NRS 704.040 Charges
for services must be just and reasonable; applicability; fair and impartial
regulation of telecommunication providers; fund to maintain availability of
telephone service; regulations concerning independent administrator to certify
or recertify eligibility of customers for lifeline service.

NRS 704.085 Electric
utility prohibited from making change in schedule or rate which requires
residential customer to purchase electric service based on time of usage;
exception.

NRS 704.095 Simplified
procedures or methodologies for changing rates for certain public utilities
furnishing water or services for sewage.

NRS 704.097 Simplified
procedure for obtaining certificate of public convenience and necessity and for
changing rates for certain public utilities furnishing liquefied petroleum gas.

NRS 704.100 Procedure
for changing schedule: Approval of Commission required; filing application or
letter of advice; quarterly rate adjustments for certain utilities; posting
proposed, new and amended schedules; limitation on use of certain information
to justify rate increase; power of Commission to dispense with hearing in
certain matters; request for waiver.

NRS 704.110 Procedure
for changing schedule: Investigation by Commission; parties; time within which
Commission must act; general rate application; other applications and rate
adjustments; deferred energy accounting adjustments; recovery of costs to plan,
construct, retire or eliminate certain facilities.

NRS 704.120 Commission
may substitute just and reasonable rates, regulations, practices or services
after investigation and hearing; exceptions.

NRS 704.130 Rates
effective and regulations enforceable until modified by Commission or court.

NRS 704.230 Installation
and use of water meters; separate rate for residential users. [Effective until
certain conditions concerning agreement between Sierra Pacific Power Company
and Pyramid Lake Paiute Tribe have been met.]

NRS 704.230 Installation
of water meters required by certain residential buildings; exceptions.
[Effective when certain conditions concerning agreement between Sierra Pacific
Power Company and Pyramid Lake Paiute Tribe have been met.]

NRS 704.235 Use
by local government of facilities of public utility for treatment, transportation
or exchange of water.

NRS 704.240 Powers
of Commission: Purchase of apparatus for examinations and tests; entry on
premises to make examination and test.

NRS 704.250 Powers
of Commission: Standards for maintenance, use and operation of electric poles,
wires, cables and appliances.

NRS 704.260 Powers
of Commission: Requiring repair and construction of property and use of
appliances for safety; regulations.

NRS 704.309 Railroads:
Commission to levy and collect annual assessments; fee for delinquent
assessment; sale or transfer of certificate of public convenience and
necessity; action for collection of assessment or fee.

NRS 704.310 Sale
of surplus light, heat or power by person not public utility; approval by
Commission.

NRS 704.320 Purchase
of surplus water or electric current by public utility for resale; application
filed with Commission; approval of application; seller not deemed public
utility.

NRS 704.329 Mergers,
acquisitions or changes in control of public utility or entity that holds controlling
interest in public utility: Authorization of Commission required; time within
which Commission must act; exceptions.

NRS 704.330 Public
utility to obtain certificate of public convenience and necessity; exceptions;
terms and conditions; orders to cease and desist; duplication of service;
boundaries of certain service areas.

NRS 704.340 Municipalities
and certain trusts for furtherance of public functions not required to obtain
certificates; approval and jurisdiction of Commission.

NRS 704.370 Issuance
or refusal of certificate: Terms and conditions; hearing required for certain
applications; power of Commission to dispense with hearing for certain
applications.

NRS 704.380 Public
utility beginning, prosecuting or completing new construction without
certificate: Levy of tolls and charges prohibited and void; exceptions.

NRS 704.390 Discontinuance,
modification or restriction of service: Authorization of Commission required;
hearing required for certain applications; power of Commission to dispense with
hearing for certain applications.

NRS 704.400 Order
of Commission prima facie lawful from date of order.

NRS 704.410 Transfer
of certificate: Authorization of Commission required; hearing required for
certain transfers; power of Commission to dispense with hearing for certain
transfers; factors considered; effectiveness of certificate after transfer.

VALUATION OF PROPERTY

NRS 704.440 Investigation
and ascertainment of value of property of public utility; exceptions.

NRS 704.655 Public
utility required to pay interest on deposits made by customers; penalty.

WATER SERVICE AND SEWAGE SERVICE

NRS 704.660 Public
utility supplying water required to provide sufficient water for protection
from fire at reasonable rates; regulations by Commission.

NRS 704.661 Certain
public utilities furnishing water or sewage service required to submit resource
plan for meeting demand made on system; request for waiver from submission of
resource plan; contents and procedure; recovery of certain costs and
expenditures relating to plan.

NRS 704.662 Plan
of water conservation: Requirement and procedure for adoption; review by Commission;
election to comply with plan adopted by Commission.

NRS 704.6622 Plan
of water conservation: Contents; approval by Commission.

NRS 704.6624 Plan
to provide incentives for water conservation: Procedure for adoption; revision;
review and approval by Commission.

NRS 704.663 Certain
public utilities furnishing water or sewage service: Regulations by Commission
to consider certain requests by utility to recover costs or impose surcharge.

NRS 704.664 Facility
for treatment of water acquired and constructed by county: Approval of
Commission required for imposition of tax to finance facility if water taxed is
supplied by public utility; determination by Commission.

NRS 704.6642 Facility
for treatment of water acquired and constructed by county: Billing and
collection of tax imposed on customers of public utility.

NRS 704.6644 Facility
for treatment of water acquired and constructed by county: Public utility’s use
of water treatment services provided by facility authorized; Commission’s
approval of agreement for use required.

NRS 704.6646 Facility
for treatment of water acquired and constructed by county: Operation and
maintenance of facility by public utility authorized; Commission’s approval of
agreement for operation and maintenance required.

NRS 704.665 Water
to be provided through single connection to building containing multiple units
for occupancy; exception.

NRS 704.667 Public
utility not required to furnish water for artificial lake or stream if
prohibited or restricted by ordinance in certain counties; exceptions.

NRS 704.6672 Review
of water supply and sewage service for certain proposed subdivisions: Duties of
Commission; fee; exceptions.

NRS 704.6674 Supplier
of water or services for sewage: Regulation by county; exceptions; appointment
of receiver upon petition of county commissioners.

NRS 704.6676 Supplier
of water or services for sewage: Appointment of receiver upon petition of
Commission.

NRS 704.668 Disposal
or encumbrance of property by certain public utilities furnishing water or
services for sewage: Approval of Commission required; hearing required in
certain matters; regulations.

NRS 704.6884 Providers
required to comply with state and federal consumer and antitrust protections;
providers subject to laws governing unfair trade practices for violations of
standards established by Commission.

NRS 704.68886 Relief
from obligations and status as provider of last resort; requirements; filing
application; power of Commission to declare emergency in area where alternative
voice service is unavailable.

NRS 704.7823 System
that draws or creates electricity from tires deemed not to be renewable energy
system; exception; calculation of electricity generated or acquired from
certain systems that utilize reverse polymerization process.

NRS 704.787 Authority
to sell electricity and provide transmission service and distribution service
to certain customers without being subject to jurisdiction of Public Utilities
Commission of Nevada; tariff for distribution service; duties of certain
electric utility; regulations by Colorado River Commission of Nevada.

NRS 704.870 Requirements
for filing application: Form and contents; procedure when federal agency is
required to conduct environmental analysis; time for filing application;
service; public notice.

NRS 704.871 Approval
of application for utility facility not intended to serve customers in State.

NRS 704.873 Commission
has exclusive jurisdiction to determine need for utility facilities of certain
public utilities; other permitting entities precluded from considering need.

NRS 704.875 Review
of application by Division of Environmental Protection of State Department of
Conservation and Natural Resources.

NRS 704.877 Duty
to accept and incorporate findings and conclusions of environmental review that
already has been conducted; duplicative review prohibited; exception; duty to
cooperate and coordinate to avoid duplication of activities.

NRS 704.880 Power
of Commission to dispense with hearing for certain applications; practice and
procedure at hearings.

NRS 704.8905 Grant
or denial of application: Time within which Commission and other permitting
entities must act; determination upon record; terms, conditions and
modifications; service of Commission order.

NRS 704.891 Reports
to be filed with Commission by person holding permit who is not public utility.

NRS 704.893 Limitations
on purchase of capacity of utility facility by certain public utilities.

NRS 704.910 Applicability
of provisions to mobile home parks; utility or alternative seller prohibited
from selling to landlord at higher rate.

NRS 704.920 Applicability
of provisions to company towns; examination of lines and equipment; costs;
consequences of refusal to allow examination; repair of unsafe lines or
equipment.

NRS 704.930 Manner
of provision and interruption of service by landlord of mobile home park or
owner of company town; notice of proposed increase in rates.

NRS 704.940 Rates;
service charges; proration and limitations on certain charges for water;
itemization of charges; retention of copy of billings; transfer of balance by
landlord upon termination of interest in mobile home park.

NRS 704.997 Alternative
plan of regulation for utility that supplies natural gas: Requirements;
regulations; applicability of statutory provisions; use of name or logo by
affiliate; sale of service relating to supply of natural gas by unlicensed
alternative seller unlawful.

NRS 704.001Purpose and policy of Legislature in enacting chapter.It is hereby declared to be the purpose and
policy of the Legislature in enacting this chapter:

1. To confer upon the Commission the
power, and to make it the duty of the Commission, to regulate public utilities
to the extent of its jurisdiction;

2. To provide for fair and impartial
regulation of public utilities;

3. To provide for the safe, economic,
efficient, prudent and reliable operation and service of public utilities;

4. To balance the interests of customers
and shareholders of public utilities by providing public utilities with the opportunity
to earn a fair return on their investments while providing customers with just
and reasonable rates; and

5. With regard to telecommunication
service:

(a) To regulate competitive suppliers in a manner
that allows customers to benefit from full competition regarding rates and
services;

(b) To provide for basic
network service to economically disadvantaged persons who are eligible for a
reduction in rates for telephone service pursuant to NRS 707.400 to 707.500, inclusive; and

(c) To maintain the availability of telephone
service to rural, insular and high-cost areas through:

(1) The levy and collection of a uniform
and equitable assessment from all persons furnishing intrastate
telecommunication service or the functional equivalent of such service through
any form of telephony technology; and

(2) Payments to telecommunication
providers from the fund to maintain the availability of telephone service.

NRS 704.005Definitions.As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 704.006 to 704.028, inclusive, have the meanings ascribed to them
in those sections.

NRS 704.013“Fund to maintain the availability of telephone service”
defined.“Fund to maintain the
availability of telephone service” means the fund established by the Commission
pursuant to NRS 704.040 to maintain the
availability of telephone service.

NRS 704.0135“Incumbent local exchange carrier” defined.“Incumbent local exchange carrier” has the
meaning ascribed to it in 47 U.S.C. § 251(h)(1), as that section existed on
October 1, 1999, and includes a local exchange carrier that is treated as an incumbent
local exchange carrier pursuant to that section.

NRS 704.0137“Interexchange carrier” defined.“Interexchange
carrier” means any person providing either or both intrastate
and interstate telecommunication service for a fee
between two or more exchanges.

NRS 704.018“Provider of last resort” defined.“Provider
of last resort” means the telecommunication provider designated by the
regulations of the Commission to provide basic network service and business
line service to any person requesting and eligible to receive telephone service
in a particular service territory.

(a) Any person who owns, operates, manages or
controls any railroad or part of a railroad as a common carrier in this State,
or cars or other equipment used thereon, or bridges, terminals, or sidetracks,
or any docks or wharves or storage elevators used in connection therewith,
whether or not they are owned by the railroad.

(b) Any person, other than a provider of
commercial mobile radio service, that provides a telecommunication service to
the public, but only with regard to those operations which consist of providing
a telecommunication service to the public.

(c) Any provider of commercial mobile radio
service, but such providers:

(1) Must be regulated in a manner
consistent with federal law; and

(2) Must not be regulated as
telecommunication providers for the purposes of this chapter.

2. “Public utility” or “utility” also
includes:

(a) Any plant or equipment, or any part of a
plant or equipment, within this State for the production, delivery or
furnishing for or to other persons, including private or municipal
corporations, heat, gas, coal slurry, light, power in any form or by any
agency, water for business, manufacturing, agricultural or household use, or
sewerage service, whether or not within the limits of municipalities.

(b) Any system for the distribution of liquefied
petroleum gas to 10 or more users.

Ê The
Commission may supervise, regulate and control all such utilities, subject to
the provisions of this chapter and to the exclusion of the jurisdiction,
regulation and control of such utilities by any municipality, town or village,
unless otherwise provided by law.

3. The provisions of this chapter and the
term “public utility” apply to all railroads, express companies, car companies
and all associations of persons, whether or not incorporated, that do any
business as a common carrier upon or over any line of railroad within this
State.

NRS 704.021“Public utility” or “utility” further defined.“Public utility” or “utility” does not
include:

1. Persons engaged in the production and
sale of natural gas, other than sales to the public, or engaged in the
transmission of natural gas other than as a common carrier transmission or
distribution line or system.

2. Persons engaged in the business of
furnishing, for compensation, water or services for the disposal of sewage, or
both, to persons within this State if:

(a) They serve 25 persons or less; and

(b) Their gross sales for water or services for
the disposal of sewage, or both, amounted to $25,000 or less during the
immediately preceding 12 months.

3. Persons not otherwise engaged in the
business of furnishing, producing or selling water or services for the disposal
of sewage, or both, but who sell or furnish water or services for the disposal
of sewage, or both, as an accommodation in an area where water or services for
the disposal of sewage, or both, are not available from a public utility,
cooperative corporations and associations or political subdivisions engaged in
the business of furnishing water or services for the disposal of sewage, or
both, for compensation, to persons within the political subdivision.

4. Persons who are engaged in the
production and sale of energy, including electricity, to public utilities,
cities, counties or other entities which are reselling the energy to the
public.

6. Persons who are engaged in the sale or
use of special fuel as defined in NRS
366.060.

7. Persons who provide water from water
storage, transmission and treatment facilities if those facilities are for the
storage, transmission or treatment of water from mining operations.

8. Persons who are video service
providers, as defined in NRS 711.151,
except for those operations of the video service provider which consist of
providing a telecommunication service to the public, in which case the video
service provider is a public utility only with regard to those operations of
the video service provider which consist of providing a telecommunication
service to the public.

9. Persons who own or operate a net
metering system described in paragraph (c) of subsection 1 of NRS 704.771.

10. Persons who for compensation own or
operate individual systems which use renewable energy to generate electricity
and sell the electricity generated from those systems to not more than one
customer of the public utility per individual system if each individual system
is:

(a) Located on the premises of another person;

(b) Used to produce not more than 150 percent of
that other person’s requirements for electricity on an annual basis for the
premises on which the individual system is located; and

(c) Not part of a larger system that aggregates
electricity generated from renewable energy for resale or use on premises other
than the premises on which the individual system is located.

Ê As used in
this subsection, “renewable energy” has the meaning ascribed to it in NRS 704.7811.

NRS 704.023“Small-scale provider of last resort” defined.“Small-scale provider of last resort” means an
incumbent local exchange carrier that is a provider of last resort of basic
network service and business line service to customers through less than 60,000
access lines.

NRS 704.025“Telecommunication” defined.“Telecommunication”
means the transmission, between or among points specified by the user, of
information of the user’s choosing, without change in the form or content of
the information sent and received, regardless of the facilities, equipment or
technology used.

NRS 704.027“Telecommunication provider” or “telephone company” defined.“Telecommunication provider” or “telephone
company” means any person required to obtain from the Commission a certificate
of public convenience and necessity pursuant to NRS
704.330 to provide telecommunication service.

NRS 704.028“Telecommunication service” or “telephone service” defined.“Telecommunication service” or
“telephone service” means the offering of telecommunication for a fee directly to the public,
or such classes of users as to be effectively available directly to the public,
regardless of the equipment, facilities or technology
used.

NRS 704.031Power to subpoena person claiming exemption.The Commission may by subpoena require any
person claiming to be exempt from regulation by reason of NRS 704.021 to appear before it with all of the
person’s relevant books, papers and records, and to testify concerning the
scope, nature and conduct of the person’s business.

(Added to NRS by 1983, 234)

NRS 704.032Participation of Office of Economic Development in proceedings
before Commission.The Office of
Economic Development may participate in proceedings before the Public Utilities
Commission of Nevada concerning a public utility in the business of supplying
electricity or natural gas to advocate the accommodation of the State Plan for
Economic Development developed by the Executive Director of the Office pursuant
to subsection 2 of NRS 231.053. The
Office of Economic Development may intervene as a matter of right in a
proceeding pursuant to NRS 704.736 to 704.754, inclusive, or 704.991.

1. Except as otherwise provided in
subsection 6, the Commission shall levy and collect an annual assessment from
all public utilities, providers of discretionary natural gas service and
alternative sellers subject to the jurisdiction of the Commission.

2. Except as otherwise provided in
subsections 3 and 4, the annual assessment must be:

(a) For the use of the Commission, not more than
3.50 mills; and

(b) For the use of the Consumer’s Advocate, not
more than 0.75 mills,

Ê on each
dollar of gross operating revenue derived from the intrastate operations of
such utilities, providers of discretionary natural gas service and alternative
sellers in the State of Nevada. The total annual assessment must be not more
than 4.25 mills.

3. The levy for the use of the Consumer’s
Advocate must not be assessed against railroads.

4. The minimum assessment in any 1 year
must be $100.

5. The gross operating revenue of the
utilities must be determined for the preceding calendar year. In the case of:

(a) Telecommunication providers, except as
provided in paragraph (c), the revenue shall be deemed to be all intrastate
revenues.

(b) Railroads, the revenue shall be deemed to be
the revenue received only from freight and passenger intrastate movements.

(c) All public utilities, providers of
discretionary natural gas service and alternative sellers, the revenue does not
include the proceeds of any commodity, energy or service furnished to another
public utility, provider of discretionary natural gas service or alternative
seller for resale.

6. Providers of commercial mobile radio
service are not subject to the annual assessment and, in lieu thereof, shall
pay to the Commission an annual licensing fee of $200.

1. On or before June 15 of each year, the
Commission shall mail revenue report forms to all public utilities, providers
of discretionary natural gas service and alternative sellers under its
jurisdiction, to the address of those utilities, providers of discretionary
natural gas service and alternative sellers on file with the Commission. The
revenue report form serves as notice of the Commission’s intent to assess such
entities, but failure to notify any such entity does not invalidate the
assessment with respect thereto.

2. Each public utility, provider of
discretionary natural gas service and alternative seller subject to the
provisions of NRS 704.033 shall complete the
revenue report referred to in subsection 1, compute the assessment and return
the completed revenue report to the Commission accompanied by payment of the
assessment and any fee due, pursuant to the provisions of subsection 5.

3. The assessment is due on July 1 of each
year, but may, at the option of the public utility, provider of discretionary
natural gas service and alternative seller, be paid quarterly on July 1,
October 1, January 1 and April 1.

4. The assessment computed by the public
utility, provider of discretionary natural gas service or alternative seller is
subject to review and audit by the Commission, and the amount of the assessment
may be adjusted by the Commission as a result of the audit and review.

5. Any public utility, provider of
discretionary natural gas service or alternative seller failing to pay the
assessment provided for in NRS 704.033 on or before
August 1, or if paying quarterly, on or before August 1, October 1, January 1
or April 1, shall pay, in addition to such assessment, a fee of 1 percent of
the total unpaid balance for each month or portion thereof that the assessment
is delinquent, or $10, whichever is greater, but no fee may exceed $1,000 for
each delinquent payment.

6. When a public utility, provider of
discretionary natural gas service or alternative seller sells, transfers or
conveys substantially all of its assets or, if applicable, its certificate of
public convenience and necessity, the Commission shall determine, levy and
collect the accrued assessment for the current year not later than 30 days
after the sale, transfer or conveyance, unless the transferee has assumed
liability for the assessment. For purposes of this subsection, the jurisdiction
of the Commission over the selling, transferring or conveying public utility,
provider of discretionary natural gas service or alternative seller continues
until it has paid the assessment.

7. The Commission may bring an appropriate
action in its own name for the collection of any assessment and fee which is
not paid as provided in this section.

8. The Commission shall, upon collection,
transfer to the Account for the Consumer’s Advocate that portion of the
assessments collected which belongs to the Consumer’s Advocate.

NRS 704.040Charges for services must be just and reasonable; applicability;
fair and impartial regulation of telecommunication providers; fund to maintain
availability of telephone service; regulations concerning independent
administrator to certify or recertify eligibility of customers for lifeline
service.

1. Every public utility shall furnish
reasonably adequate service and facilities. Subject to the provisions of
subsection 3, the charges made for any service rendered or to be rendered, or
for any service in connection therewith or incidental thereto, must be just and
reasonable.

2. Every unjust and unreasonable charge
for service of a public utility is unlawful.

(a) A competitive supplier is exempt from any
provision of this chapter governing the rates, prices, terms and conditions of
any telecommunication service.

(b) A small-scale provider of last resort is
subject to the provisions of this chapter, NRS
427A.797 and chapter 707 of NRS.

4. All telecommunication providers which
offer the same or similar service must be subject to fair and impartial
regulation, to promote adequate, economical and efficient service.

5. To maintain the availability of
telephone service in accordance with the regulations adopted pursuant to NRS 704.6873, the Commission shall provide for the
levy and collection of a uniform and equitable assessment, in an amount
determined by the Commission, from all persons furnishing intrastate
telecommunication service or the functional equivalent of
such service through any form of telephony technology,
unless the levy and collection of the assessment with regard to a particular
form of technology is prohibited by federal law. Assessments levied and
collected pursuant to this subsection must be maintained in a separate fund
established by the Commission. The Commission shall contract with an
independent administrator to administer the fund pursuant to open competitive
bidding procedures established by the Commission. The independent administrator
shall collect the assessments levied and distribute them from the fund pursuant
to a plan which has been approved by the Commission.

6. The Commission shall by regulation
establish:

(a) The procedure for contracting with an
independent administrator who will certify or recertify the eligibility of
customers for lifeline service as defined in NRS
707.450, including:

(1) The selection of the independent
administrator pursuant to open competitive bidding procedures established by
the Commission; and

(2) The duties of the independent
administrator which must be promulgated in advance of conducting the initial
request for proposal for the independent administrator.

(b) The duties of the independent administrator
which must:

(1) Be determined by criteria adopted by
the Commission or the Federal Communications Commission;

(2) Provide for the independent
administrator to be able to accomplish all functions necessary for interfacing
with the National Lifeline Accountability Database when it is established and
operational pursuant to 47 C.F.R. § 54.404 and any other national eligibility
database for eligible telecommunication providers; and

(3) Require the independent administrator
to be responsible for informing eligible telecommunication providers of the
status of their customers’ eligibility to receive lifeline service as defined
in NRS 707.450.

7. To implement the requirements of
subsections 5 and 6, the Commission:

(a) May select a single entity to perform the
duties of subsections 5 and 6; and

(b) Is authorized to use the fund set forth in
subsection 5 for the sole purpose of maintaining the availability of telephone
service as set forth in subsections 5 and 6.

1. Nothing in this chapter shall be
construed to prevent concentration, commodity, transit and other special
contract rates, but all such rates shall be open to all shippers of a like kind
of traffic under similar circumstances and conditions, and shall be subject to
the provisions of this chapter as to the printing and filing of the same.

2. All such rates shall be under the
supervision and regulation of the Commission.

[16:109:1919; 1919 RL p. 3159; NCL § 6115]

NRS 704.060Charge for shorter haul included within longer haul.Nothing in this chapter shall be construed:

1. To allow any railroad to charge more
for a shorter than for a longer haul, either for passengers or freight, when
the shorter haul is included within the longer; or

2. To authorize the Commission to allow
such charge to be made.

[20:109:1919; 1919 RL p. 3161; NCL § 6120]

RATES AND SCHEDULES

NRS 704.061Definitions.As
used in NRS 704.061 to 704.110,
inclusive, unless the context otherwise requires, the words and terms defined
in NRS 704.062, 704.065
and 704.066 have the meanings ascribed to them in
those sections.

NRS 704.066“Schedule” defined.“Schedule”
means any schedule that establishes or otherwise sets the rates for a public
utility and any individual or joint rule, regulation, practice, classification
or measurement that in any manner affects those rates.

NRS 704.068Acts deemed to be change in schedule.For
the purposes of NRS 704.061 to 704.110, inclusive, a public utility shall be deemed
to make changes in a schedule if the public utility implements a new schedule
or amends an existing schedule.

1. Except as otherwise provided in
subsections 9 and 11 of NRS 704.110, the Commission
shall conduct a consumer session to solicit comments from the public in any
matter pending before the Commission pursuant to NRS
704.061 to 704.110, inclusive, in which:

(a) A public utility has filed a general rate
application, an application to recover the increased cost of purchased fuel,
purchased power, or natural gas purchased for resale, an annual deferred energy
accounting adjustment application pursuant to NRS
704.187 or an annual rate adjustment application; and

(b) The changes proposed in the application will
result in an increase in annual gross operating revenue, as certified by the
applicant, in an amount that will exceed $50,000 or 10 percent of the
applicant’s annual gross operating revenue, whichever is less.

2. In addition to the case-specific
consumer sessions required by subsection 1, the Commission shall, during each
calendar year, conduct at least one general consumer session in the county with
the largest population in this State and at least one general consumer session
in the county with the second largest population in this State. At each general
consumer session, the Commission shall solicit comments from the public on
issues concerning public utilities. Not later than 60 days after each general
consumer session, the Commission shall submit the record from the general
consumer session to the Legislative Commission.

NRS 704.070Public utility required to file current schedules with
Commission and to post current schedules at certain offices; public inspection
of current schedules.Except as
otherwise provided in NRS 704.075, 704.095, 704.097 and 704.68861 to 704.68887,
inclusive:

1. Each public utility shall file with the
Commission, within a time to be fixed by the Commission, a copy of all
schedules that are currently in force for the public utility. Such schedules
must be open to public inspection.

2. A copy of each schedule that is
currently in force for the public utility, or so much of the schedule as the
Commission deems necessary for inspection by the public, must be:

(a) Printed in plain type and posted in each
office of the public utility where payments are made to the public utility by
its customers; and

(b) Open to inspection by the public and in such
form and place as to be readily accessible to and conveniently inspected by the
public.

(b) “Industrial customer” means a customer
engaged primarily in manufacturing or processing which changes raw or
unfinished materials into another form or creates another product.

(c) “Large commercial customer” means a customer
whose requirements equal or exceed 50,000 cubic feet of natural gas per day on
any day and which is an institution, an agency of federal, state or local government,
or engaged primarily in renting out offices or other commercial space, in
providing lodging or in the sale of other goods or services.

2. The Commission shall establish
standards for the setting, increase or decrease of rates for natural gas to generating,
industrial and large commercial customers. These standards must authorize
increases or decreases on less than 30 days’ notice. Establishing different
classes of customers, and charging different rates to customers of the same
class, for these customers do not violate this chapter.

3. The Commission may, for sales to
generating, industrial and large commercial customers:

(a) Exempt the rates for natural gas from those
provisions of NRS 704.070, 704.100
and 704.110 that the Commission determines are not
needed to protect the public interest.

(b) Authorize the establishment of different classes
of customer or the charging of different rates for customers of the same class,
based on value of the service and on the customer’s ability to change from one
fuel to another.

NRS 704.085Electric utility prohibited from making change in schedule or
rate which requires residential customer to purchase electric service based on
time of usage; exception.

1. An electric utility shall not make
changes in any schedule or impose any rate, and the Commission shall not
approve any changes in any schedule or authorize the imposition of any rate by
an electric utility, which requires a residential customer to purchase electric
service at a rate which is based on the time of day, day of the week or time of
year during which the electricity is used or which otherwise varies based upon
the time during which the electricity is used, except that the Commission may
approve such a change in a schedule or authorize the imposition of such a rate
if the approval or authorization is conditioned upon an election by a
residential customer to purchase electric service at such a rate.

2. As used in this section, “electric
utility” has the meaning ascribed to it in NRS 704.187.

NRS 704.095Simplified procedures or methodologies for changing rates for
certain public utilities furnishing water or services for sewage.

1. The Commission shall adopt regulations
which provide simplified procedures or methodologies for a change of rates for
those public utilities which furnish water or services for the disposal of
sewage, or both, to persons within this State for compensation, and which:

(a) Serve 3,000 or fewer persons; and

(b) Had during the immediately preceding 12-month
period gross sales for water or services for the disposal of sewage amounting
to $2,000,000 or less. If a public utility furnishes both water and services
for the disposal of sewage, its gross sales for each service must be considered
separately for determining whether the public utility qualifies under this paragraph
for either service.

2. The regulations adopted by the
Commission pursuant to subsection 1 must provide, without limitation, for the
filing of letters of advice to change rates based on a nationally recognized
inflation index approved by the Commission.

NRS 704.097Simplified procedure for obtaining certificate of public
convenience and necessity and for changing rates for certain public utilities
furnishing liquefied petroleum gas.The
Commission may adopt regulations which provide simplified procedures for
obtaining certificates of public convenience and necessity and for changing
rates for those public utilities which furnish only liquefied petroleum gas.

NRS 704.100Procedure for changing schedule: Approval of Commission
required; filing application or letter of advice; quarterly rate adjustments
for certain utilities; posting proposed, new and amended schedules; limitation
on use of certain information to justify rate increase; power of Commission to
dispense with hearing in certain matters; request for waiver.

(a) A public utility shall not make changes in
any schedule, unless the public utility:

(1) Files with the Commission an
application to make the proposed changes and the Commission approves the
proposed changes pursuant to NRS 704.110; or

(2) Files the proposed changes with the
Commission using a letter of advice in accordance with the provisions of
paragraph (f) or (g).

(b) A public utility shall adjust its rates on a
quarterly basis between annual rate adjustment applications pursuant to
subsection 8 of NRS 704.110 based on changes in the
public utility’s recorded costs of natural gas purchased for resale.

(d) A public utility shall post copies of all
proposed schedules and all new or amended schedules in the same offices and in
substantially the same form, manner and places as required by NRS 704.070 for the posting of copies of schedules
that are currently in force.

(e) A public utility may not set forth as
justification for a rate increase any items of expense or rate base that
previously have been considered and disallowed by the Commission, unless those
items are clearly identified in the application and new facts or considerations
of policy for each item are advanced in the application to justify a reversal
of the prior decision of the Commission.

(f) Except as otherwise provided in paragraph
(g), if the proposed change in any schedule does not change any rate or will
result in an increase in annual gross operating revenue, as certified by the
public utility, in an amount that does not exceed $2,500:

(1) The public utility may file the proposed
change with the Commission using a letter of advice in lieu of filing an
application; and

(2) The Commission shall determine whether
it should dispense with a hearing regarding the proposed change.

(g) If the applicant is a small-scale provider of
last resort and the proposed change in any schedule will result in an increase
in annual gross operating revenue, as certified by the applicant, in an amount
that does not exceed $50,000 or 10 percent of the applicant’s annual gross
operating revenue, whichever is less:

(1) The applicant may file the proposed
change with the Commission using a letter of advice in lieu of filing an
application if the applicant:

(I) Demonstrates that the proposed
change in schedule is required by or directly related to a regulation or order
of the Federal Communications Commission; and

(II) Except as otherwise provided in
subsection 2, files the letter of advice not later than 5 years after the
Commission has issued a final order on a general rate application filed by the
applicant in accordance with subsection 3 of NRS
704.110; and

(2) The Commission shall determine whether
it should dispense with a hearing regarding the proposed change.

Ê Not later
than 10 business days after the filing of a letter of advice pursuant to
subparagraph (1), the Regulatory Operations Staff of the Commission or any
other interested party may file with the Commission a request that the
Commission order an applicant to file a general rate application in accordance
with subsection 3 of NRS 704.110. The Commission
may hold a hearing to consider such a request.

(h) In making the determination pursuant to
paragraph (f) or (g), the Commission shall first consider all timely written
protests, any presentation that the Regulatory Operations Staff of the
Commission may desire to present, the application of the public utility and any
other matters deemed relevant by the Commission.

2. An applicant that is a small-scale
provider of last resort may submit to the Commission a written request for a
waiver of the 5-year period specified in sub-subparagraph (II) of subparagraph
(1) of paragraph (g) of subsection 1. The Commission shall, not later than 90
days after receipt of such a request, issue an order approving or denying the
request. The Commission may approve the request if the applicant provides proof
satisfactory to the Commission that the applicant is not earning more than the
rate of return authorized by the Commission and that it is in the public
interest for the Commission to grant the request for a waiver. The Commission
shall not approve a request for a waiver if the request is submitted later than
7 years after the issuance by the Commission of a final order on a general rate
application filed by the applicant in accordance with subsection 3 of NRS 704.110. If the Commission approves a request for
a waiver submitted pursuant to this subsection, the applicant shall file the
letter of advice pursuant to subparagraph (1) of paragraph (g) of subsection 1
not earlier than 120 days after the date on which the applicant submitted the
request for a waiver pursuant to this subsection, unless the order issued by
the Commission approving the request for a waiver specifies a different period
for the filing of the letter of advice.

3. As used in this section, “electric
utility” has the meaning ascribed to it in NRS 704.187.

NRS 704.110Procedure for changing schedule: Investigation by Commission;
parties; time within which Commission must act; general rate application; other
applications and rate adjustments; deferred energy accounting adjustments;
recovery of costs to plan, construct, retire or eliminate certain facilities.Except as otherwise provided in NRS 704.075 and 704.68861
to 704.68887, inclusive, or as may otherwise be
provided by the Commission pursuant to NRS 704.095
or 704.097:

1. If a public utility files with the
Commission an application to make changes in any schedule, including, without
limitation, changes that will result in a discontinuance, modification or
restriction of service, the Commission shall investigate the propriety of the
proposed changes to determine whether to approve or disapprove the proposed
changes. If an electric utility files such an application and the application
is a general rate application or an annual deferred energy accounting
adjustment application, the Consumer’s Advocate shall be deemed a party of
record.

2. Except as otherwise provided in
subsection 3, if a public utility files with the Commission an application to
make changes in any schedule, the Commission shall, not later than 210 days
after the date on which the application is filed, issue a written order
approving or disapproving, in whole or in part, the proposed changes.

3. If a public utility files with the
Commission a general rate application, the public utility shall submit with its
application a statement showing the recorded results of revenues, expenses,
investments and costs of capital for its most recent 12 months for which data
were available when the application was prepared. Except as otherwise provided
in subsection 4, in determining whether to approve or disapprove any increased
rates, the Commission shall consider evidence in support of the increased rates
based upon actual recorded results of operations for the same 12 months,
adjusted for increased revenues, any increased investment in facilities,
increased expenses for depreciation, certain other operating expenses as
approved by the Commission and changes in the costs of securities which are
known and are measurable with reasonable accuracy at the time of filing and
which will become effective within 6 months after the last month of those 12
months, but the public utility shall not place into effect any increased rates
until the changes have been experienced and certified by the public utility to
the Commission and the Commission has approved the increased rates. The
Commission shall also consider evidence supporting expenses for depreciation,
calculated on an annual basis, applicable to major components of the public
utility’s plant placed into service during the recorded test period or the
period for certification as set forth in the application. Adjustments to
revenues, operating expenses and costs of securities must be calculated on an
annual basis. Within 90 days after the date on which the certification required
by this subsection is filed with the Commission, or within the period set forth
in subsection 2, whichever time is longer, the Commission shall make such order
in reference to the increased rates as is required by this chapter. The
following public utilities shall each file a general rate application pursuant
to this subsection based on the following schedule:

(a) An electric utility that primarily serves
less densely populated counties shall file a general rate application not later
than 5 p.m. on or before the first Monday in June 2010, and at least once every
36 months thereafter.

(b) An electric utility that primarily serves
densely populated counties shall file a general rate application not later than
5 p.m. on or before the first Monday in June 2011, and at least once every 36
months thereafter.

(c) A public utility that furnishes water for
municipal, industrial or domestic purposes or services for the disposal of
sewage, or both, which had an annual gross operating revenue of $2,000,000 or
more for at least 1 year during the immediately preceding 3 years and which had
not filed a general rate application with the Commission on or after July 1,
2005, shall file a general rate application on or before June 30, 2008, and at
least once every 36 months thereafter unless waived by the Commission pursuant
to standards adopted by regulation of the Commission. If a public utility
furnishes both water and services for the disposal of sewage, its annual gross
operating revenue for each service must be considered separately for
determining whether the public utility meets the requirements of this paragraph
for either service.

(d) A public utility that furnishes water for
municipal, industrial or domestic purposes or services for the disposal of
sewage, or both, which had an annual gross operating revenue of $2,000,000 or
more for at least 1 year during the immediately preceding 3 years and which had
filed a general rate application with the Commission on or after July 1, 2005,
shall file a general rate application on or before June 30, 2009, and at least
once every 36 months thereafter unless waived by the Commission pursuant to standards
adopted by regulation of the Commission. If a public utility furnishes both
water and services for the disposal of sewage, its annual gross operating
revenue for each service must be considered separately for determining whether
the public utility meets the requirements of this paragraph for either service.

Ê The
Commission shall adopt regulations setting forth standards for waivers pursuant
to paragraphs (c) and (d) and for including the costs incurred by the public
utility in preparing and presenting the general rate application before the
effective date of any change in rates.

4. In addition to submitting the statement
required pursuant to subsection 3, a public utility may submit with its general
rate application a statement showing the effects, on an annualized basis, of
all expected changes in circumstances. If such a statement is filed, it must
include all increases and decreases in revenue and expenses which may occur
within 210 days after the date on which its general rate application is filed
with the Commission if such expected changes in circumstances are reasonably
known and are measurable with reasonable accuracy. If a public utility submits
such a statement, the public utility has the burden of proving that the
expected changes in circumstances set forth in the statement are reasonably
known and are measurable with reasonable accuracy. The Commission shall
consider expected changes in circumstances to be reasonably known and
measurable with reasonable accuracy if the expected changes in circumstances
consist of specific and identifiable events or programs rather than general
trends, patterns or developments, have an objectively high probability of
occurring to the degree, in the amount and at the time expected, are primarily
measurable by recorded or verifiable revenues and expenses and are easily and
objectively calculated, with the calculation of the expected changes relying
only secondarily on estimates, forecasts, projections or budgets. If the
Commission determines that the public utility has met its burden of proof:

(a) The Commission shall consider the statement
submitted pursuant to this subsection and evidence relevant to the statement,
including all reasonable projected or forecasted offsets in revenue and
expenses that are directly attributable to or associated with the expected
changes in circumstances under consideration, in addition to the statement
required pursuant to subsection 3 as evidence in establishing just and
reasonable rates for the public utility; and

(b) The public utility is not required to file
with the Commission the certification that would otherwise be required pursuant
to subsection 3.

5. If a public utility files with the
Commission an application to make changes in any schedule and the Commission
does not issue a final written order regarding the proposed changes within the
time required by this section, the proposed changes shall be deemed to be
approved by the Commission.

6. If a public utility files with the
Commission a general rate application, the public utility shall not file with
the Commission another general rate application until all pending general rate
applications filed by that public utility have been decided by the Commission
unless, after application and hearing, the Commission determines that a
substantial financial emergency would exist if the public utility is not
permitted to file another general rate application sooner. The provisions of
this subsection do not prohibit the public utility from filing with the
Commission, while a general rate application is pending, an application to
recover the increased cost of purchased fuel, purchased power, or natural gas
purchased for resale pursuant to subsection 7, a quarterly rate adjustment
pursuant to subsection 8 or 10, any information relating to deferred accounting
requirements pursuant to NRS 704.185 or an annual
deferred energy accounting adjustment application pursuant to NRS 704.187, if the public utility is otherwise
authorized to so file by those provisions.

7. A public utility may file an
application to recover the increased cost of purchased fuel, purchased power,
or natural gas purchased for resale once every 30 days. The provisions of this
subsection do not apply to:

(a) An electric utility which is required to
adjust its rates on a quarterly basis pursuant to subsection 10; or

(b) A public utility which purchases natural gas
for resale and which adjusts its rates on a quarterly basis pursuant to
subsection 8.

8. A public utility which purchases
natural gas for resale must request approval from the Commission to adjust its
rates on a quarterly basis between annual rate adjustment applications based on
changes in the public utility’s recorded costs of natural gas purchased for
resale. A public utility which purchases natural gas for resale and which
adjusts its rates on a quarterly basis may request approval from the Commission
to make quarterly adjustments to its deferred energy accounting adjustment. The
Commission shall approve or deny such a request not later than 120 days after
the application is filed with the Commission. The Commission may approve the
request if the Commission finds that approval of the request is in the public
interest. If the Commission approves a request to make quarterly adjustments to
the deferred energy accounting adjustment of a public utility pursuant to this
subsection, any quarterly adjustment to the deferred energy accounting
adjustment must not exceed 2.5 cents per therm of natural gas. If the balance
of the public utility’s deferred account varies by less than 5 percent from the
public utility’s annual recorded costs of natural gas which are used to calculate
quarterly rate adjustments, the deferred energy accounting adjustment must be
set to zero cents per therm of natural gas.

9. If the Commission approves a request to
make any rate adjustments on a quarterly basis pursuant to subsection 8:

(a) The public utility shall file written notice
with the Commission before the public utility makes a quarterly rate
adjustment. A quarterly rate adjustment is not subject to the requirements for
notice and a hearing pursuant to NRS
703.320 or the requirements for a consumer session pursuant to subsection 1
of NRS 704.069.

(b) The public utility shall provide written
notice of each quarterly rate adjustment to its customers by including the
written notice with a customer’s regular monthly bill. The public utility shall
begin providing such written notice to its customers not later than 30 days
after the date on which the public utility files its written notice with the
Commission pursuant to paragraph (a). The written notice that is included with
a customer’s regular monthly bill:

(1) Must be printed separately on
fluorescent-colored paper and must not be attached to the pages of the bill;
and

(2) Must include the following:

(I) The total amount of the increase
or decrease in the public utility’s revenues from the rate adjustment, stated
in dollars and as a percentage;

(II) The amount of the monthly
increase or decrease in charges for each class of customer or class of service,
stated in dollars and as a percentage;

(III) A statement that customers may
send written comments or protests regarding the rate adjustment to the
Commission;

(IV) A statement that the
transactions and recorded costs of natural gas which are the basis for any
quarterly rate adjustment will be reviewed for reasonableness and prudence in
the next proceeding held by the Commission to review the annual rate adjustment
application pursuant to paragraph (d); and

(V) Any other information required
by the Commission.

(c) The public utility shall file an annual rate
adjustment application with the Commission. The annual rate adjustment
application is subject to the requirements for notice and a hearing pursuant to
NRS 703.320 and the requirements for a
consumer session pursuant to subsection 1 of NRS
704.069.

(d) The proceeding regarding the annual rate
adjustment application must include a review of each quarterly rate adjustment
and the transactions and recorded costs of natural gas included in each
quarterly filing and the annual rate adjustment application. There is no
presumption of reasonableness or prudence for any quarterly rate adjustment or
for any transactions or recorded costs of natural gas included in any quarterly
rate adjustment or the annual rate adjustment application, and the public
utility has the burden of proving reasonableness and prudence in the
proceeding.

(e) The Commission shall not allow the public
utility to recover any recorded costs of natural gas which were the result of
any practice or transaction that was unreasonable or was undertaken, managed or
performed imprudently by the public utility, and the Commission shall order the
public utility to adjust its rates if the Commission determines that any
recorded costs of natural gas included in any quarterly rate adjustment or the
annual rate adjustment application were not reasonable or prudent.

10. An electric utility shall adjust its
rates on a quarterly basis based on changes in the electric utility’s recorded
costs of purchased fuel or purchased power. In addition to adjusting its rates
on a quarterly basis, an electric utility may request approval from the
Commission to make quarterly adjustments to its deferred energy accounting
adjustment. The Commission shall approve or deny such a request not later than
120 days after the application is filed with the Commission. The Commission may
approve the request if the Commission finds that approval of the request is in
the public interest. If the Commission approves a request to make quarterly
adjustments to the deferred energy accounting adjustment of an electric utility
pursuant to this subsection, any quarterly adjustment to the deferred energy
accounting adjustment must not exceed 0.25 cents per kilowatt-hour of
electricity. If the balance of the electric utility’s deferred account varies
by less than 5 percent from the electric utility’s annual recorded costs for
purchased fuel or purchased power which are used to calculate quarterly rate
adjustments, the deferred energy accounting adjustment must be set to zero
cents per kilowatt-hour of electricity.

11. A quarterly rate adjustment filed
pursuant to subsection 10 is subject to the following requirements:

(a) The electric utility shall file written
notice with the Commission on or before August 15, 2007, and every quarter thereafter of the quarterly rate adjustment to be made by the electric utility for the
following quarter. The first quarterly rate adjustment by the electric utility
will take effect on October 1, 2007, and each subsequent quarterly rate
adjustment will take effect every quarter thereafter. The first quarterly
adjustment to a deferred energy accounting adjustment must be made pursuant to
an order issued by the Commission approving the application of an electric
utility to make quarterly adjustments to its deferred energy accounting
adjustment. A quarterly rate adjustment is not subject to the requirements for
notice and a hearing pursuant to NRS
703.320 or the requirements for a consumer session pursuant to subsection 1
of NRS 704.069.

(b) The electric utility shall provide written
notice of each quarterly rate adjustment to its customers by including the
written notice with a customer’s regular monthly bill. The electric utility
shall begin providing such written notice to its customers not later than 30
days after the date on which the electric utility files a written notice with
the Commission pursuant to paragraph (a). The written notice that is included
with a customer’s regular monthly bill:

(1) Must be printed separately on fluorescent-colored
paper and must not be attached to the pages of the bill; and

(2) Must include the following:

(I) The total amount of the increase
or decrease in the electric utility’s revenues from the rate adjustment, stated
in dollars and as a percentage;

(II) The amount of the monthly
increase or decrease in charges for each class of customer or class of service,
stated in dollars and as a percentage;

(III) A statement that customers may
send written comments or protests regarding the rate adjustment to the
Commission;

(IV) A statement that the
transactions and recorded costs of purchased fuel or purchased power which are
the basis for any quarterly rate adjustment will be reviewed for reasonableness
and prudence in the next proceeding held by the Commission to review the annual
deferred energy accounting adjustment application pursuant to paragraph (d);
and

(V) Any other information required
by the Commission.

(c) The electric utility shall file an annual
deferred energy accounting adjustment application pursuant to NRS 704.187 with the Commission. The annual deferred
energy accounting adjustment application is subject to the requirements for
notice and a hearing pursuant to NRS
703.320 and the requirements for a consumer session pursuant to subsection
1 of NRS 704.069.

(d) The proceeding regarding the annual deferred
energy accounting adjustment application must include a review of each
quarterly rate adjustment and the transactions and recorded costs of purchased
fuel and purchased power included in each quarterly filing and the annual
deferred energy accounting adjustment application. There is no presumption of
reasonableness or prudence for any quarterly rate adjustment or for any
transactions or recorded costs of purchased fuel and purchased power included
in any quarterly rate adjustment or the annual deferred energy accounting
adjustment application, and the electric utility has the burden of proving
reasonableness and prudence in the proceeding.

(e) The Commission shall not allow the electric
utility to recover any recorded costs of purchased fuel and purchased power
which were the result of any practice or transaction that was unreasonable or
was undertaken, managed or performed imprudently by the electric utility, and
the Commission shall order the electric utility to adjust its rates if the
Commission determines that any recorded costs of purchased fuel and purchased
power included in any quarterly rate adjustment or the annual deferred energy
accounting adjustment application were not reasonable or prudent.

12. If an electric utility files an annual
deferred energy accounting adjustment application pursuant to subsection 11 and
NRS 704.187 while a general rate application is
pending, the electric utility shall:

(a) Submit with its annual deferred energy
accounting adjustment application information relating to the cost of service
and rate design; and

(b) Supplement its general rate application with
the same information, if such information was not submitted with the general
rate application.

13. A utility facility identified in a
3-year plan submitted pursuant to NRS 704.741 and
accepted by the Commission for acquisition or construction pursuant to NRS 704.751 and the regulations adopted pursuant
thereto, or the retirement or elimination of a utility facility identified in
an emissions reduction and capacity replacement plan submitted pursuant to NRS 704.7316 and accepted by the Commission for
retirement or elimination pursuant to NRS 704.751
and the regulations adopted pursuant thereto, shall be deemed to be a prudent
investment. The utility may recover all just and reasonable costs of planning
and constructing, or retiring or eliminating, as applicable, such a facility.

14. In regard to any rate or schedule
approved or disapproved pursuant to this section, the Commission may, after a
hearing:

(a) Upon the request of the utility, approve a
new rate but delay the implementation of that new rate:

(1) Until a date determined by the Commission;
and

(2) Under conditions as determined by the
Commission, including, without limitation, a requirement that interest charges
be included in the collection of the new rate; and

(b) Authorize a utility to implement a reduced
rate for low-income residential customers.

15. The Commission may, upon request and
for good cause shown, permit a public utility which purchases natural gas for
resale or an electric utility to make a quarterly adjustment to its deferred
energy accounting adjustment in excess of the maximum allowable adjustment
pursuant to subsection 8 or 10.

16. A public utility which purchases
natural gas for resale or an electric utility that makes quarterly adjustments
to its deferred energy accounting adjustment pursuant to subsection 8 or 10 may
submit to the Commission for approval an application to discontinue making
quarterly adjustments to its deferred energy accounting adjustment and to
subsequently make annual adjustments to its deferred energy accounting
adjustment. The Commission may approve an application submitted pursuant to
this subsection if the Commission finds that approval of the application is in
the public interest.

17. As used in this section:

(a) “Deferred energy accounting adjustment” means
the rate of a public utility which purchases natural gas for resale or an
electric utility that is calculated by dividing the balance of a deferred
account during a specified period by the total therms or kilowatt-hours which
have been sold in the geographical area to which the rate applies during the
specified period.

(c) “Electric utility that primarily serves
densely populated counties” means an electric utility that, with regard to the
provision of electric service, derives more of its annual gross operating
revenue in this State from customers located in counties whose population is
700,000 or more than it does from customers located in counties whose
population is less than 700,000.

(d) “Electric utility that primarily serves less
densely populated counties” means an electric utility that, with regard to the
provision of electric service, derives more of its annual gross operating
revenue in this State from customers located in counties whose population is
less than 700,000 than it does from customers located in counties whose
population is 700,000 or more.

NRS 704.120Commission may substitute just and reasonable rates,
regulations, practices or services after investigation and hearing; exceptions.

1. If, upon any hearing and after due
investigation, the rates, tolls, charges, schedules or joint rates shall be
found to be unjust, unreasonable or unjustly discriminatory, or to be
preferential, or otherwise in violation of any of the provisions of this
chapter, the Commission shall have the power to fix and order substituted
therefor such rate or rates, tolls, charges or schedules as shall be just and
reasonable.

2. If it shall in like manner be found
that any regulation, measurement, practice, act or service complained of is
unjust, unreasonable, insufficient, preferential, unjustly discriminatory or
otherwise in violation of the provisions of this chapter, or if it be found
that the service is inadequate, or that any reasonable service cannot be
obtained, the Commission shall have the power to substitute therefor such other
regulations, measurements, practices, service or acts and make such order
relating thereto as may be just and reasonable.

3. When complaint is made of more than one
rate, charge or practice, the Commission may, in its discretion, order separate
hearings upon the several matters complained of and at such times and places as
it may prescribe.

4. No complaint shall at any time be
dismissed because of the absence of direct damage to the complainant.

5. The Commission may at any time, upon
its own motion, investigate any of the rates, tolls, charges, rules,
regulations, practices and service, and, after a full hearing as above provided,
by order, make such changes as may be just and reasonable, the same as if a
formal complaint had been made.

6. The provisions
of this section do not apply to a competitive supplier, except that a
competitive supplier that is an incumbent local exchange carrier is subject to
the provisions of this section with regard to:

(a) The provision of basic network service until
January 1, 2012; and

(b) Any general rate application filed by the
competitive supplier pursuant to paragraph (b) of subsection 2 of NRS 704.68877. If the competitive supplier files
such a general rate application, the general rate case proceeding must be
conducted by the Commission in accordance with this section and NRS 704.110.

7. Nothing in this chapter shall be
construed to prohibit the Commission from authorizing an electric utility to
provide reduced rates to low-income customers upon a hearing and after due
investigation.

NRS 704.130Rates effective and regulations enforceable until modified by
Commission or court.

1. All rates, charges, classifications and
joint rates fixed by the Commission are in force, and are prima facie lawful,
from the date of the order until changed or modified by the Commission, or
pursuant to NRS 703.373 to 703.376, inclusive.

2. All regulations, practices and service
prescribed by the Commission must be enforced and are prima facie reasonable
unless suspended or found otherwise in an action brought for the purpose,
pursuant to the provisions of NRS 703.373
to 703.376, inclusive, or until changed
or modified by the Commission itself upon satisfactory showing made, or by the
public utility by filing a bond pursuant to NRS
703.374.

1. It is unlawful for any person engaged
in business as a public utility to give or furnish to any state, district,
county or municipal officer of this State, or to any person other than those
named herein, any pass, frank, free or reduced transportation, or for any
state, district, county or municipal officer to accept any pass, frank, free or
reduced transportation.

2. This section does not prevent the
carriage, storage or hauling of property free or at reduced rates for the
United States, the State of Nevada or any political subdivision thereof for
charitable purposes.

3. This chapter does not prohibit a public
utility from giving free or reduced rates for transportation of:

(a) Its own officers, commission agents,
employees, attorneys, physicians and surgeons and members of their families,
and pensioned ex-employees and ex-employees with disabilities, their minor
children or dependents, or witnesses attending any legal investigation in which
such carrier is interested.

(b) Inmates of hospitals or charitable
institutions and persons over 65 years of age.

(c) Persons with physical or mental disabilities
who present a written statement from a physician to that effect.

(d) Persons injured in accidents or wrecks and
physicians and nurses attending such persons.

(e) Persons providing relief in cases of common
disaster, or for contractors and their employees, in carrying out their
contract with such carrier.

(f) Peace officers when on official duty.

(g) Attendants of livestock or other property
requiring the care of an attendant, including return passage to the place of
shipment, if there is no discrimination among such shippers of a similar class.

(h) Employees of other carriers subject to
regulation in any respect by the Commission, or for the officers, agents,
employees, attorneys, physicians and surgeons of such other carriers, and the
members of their families.

4. This chapter does not prohibit public
utilities from giving reduced rates for transportation to:

(a) Indigent, destitute or homeless persons, when
under the care or responsibility of charitable societies, institutions or
hospitals, and the necessary agents employed in such transportation.

(b) Students of institutions of learning.

5. “Employees,” as used in this section,
includes furloughed, pensioned and superannuated employees, and persons who
have become disabled or infirm in the service of any such carrier, and persons
traveling for the purpose of entering the service of any such carrier.

6. Any person violating the provisions of
this section shall be punished by a fine of not more than $500.

NRS 704.143Persons with physical or mental disabilities entitled to full
and equal enjoyment of facilities for public transportation; unlawful denial of
services and facilities.

1. All persons with physical or mental
disabilities are entitled to the full and equal enjoyment of the facilities of
any common carrier or other means of public conveyance and transportation
operating within this State.

2. It is unlawful for any person, firm,
partnership or corporation to deny any of the privileges granted by subsection
1.

3. It is unlawful for any common carrier
or other means of public conveyance or transportation operating within this
State, to deny the equal enjoyment of its services and facilities to a person
with a physical disability by the arbitrary, capricious or unreasonable
interference, direct or indirect, with the use of aids and appliances used by
such person with a physical disability for purposes of mobility.

(Added to NRS by 1969, 587; A 1971, 1058; 1979, 204)

NRS 704.145Unlawful to refuse service of public transportation or charge
additional fee or deposit to certain persons accompanied by service animal or
service animal in training; remedies.

1. It is unlawful for a common carrier or
other means of public conveyance or transportation operating in this State to:

(a) Refuse service to a person with a disability
because the person is accompanied by a service animal;

(b) Refuse service to a person who is training a
service animal because the person is accompanied by the service animal in
training; or

(c) Charge an additional fee or a deposit for a
service animal or service animal in training.

2. This section does not relieve a person
with a disability who is accompanied by a service animal or a person who trains
a service animal from liability for damage which may be caused by the service
animal or service animal in training.

3. Persons with disabilities accompanied
by service animals on common carriers or other means of public conveyance or
transportation operating in this State are subject to the same conditions and
limitations that apply to persons without disabilities who are not so
accompanied.

4. A common carrier or other means of
public conveyance or transportation operating in this State that violates any
of the provisions of subsection 1 is civilly liable to the person against whom
the violation was committed for:

(a) Actual damages;

(b) Such punitive damages as may be determined by
a jury, or by a court sitting without a jury, which must not be more than three
times the amount of actual damages, except that in no case may the punitive
damages be less than $750; and

(c) Reasonable attorney’s fees as determined by
the court.

5. The remedies provided in this section
are nonexclusive and are in addition to any other remedy provided by law,
including, without limitation, any action for injunctive or other equitable
relief available to the aggrieved person or brought in the name of the people
of this State or the United States.

NRS 704.150Duty of connecting railroad to transfer car for just and
reasonable charge.All railroad
corporations whose tracks connect shall transfer cars reciprocally from one
railroad to the other upon demand of shippers or of the railroad concerned at
just and reasonable charges to be fixed by the Commission.

[19:109:1919; 1919 RL p. 3160; NCL § 6119]

NRS 704.160Duty of railroad to provide and maintain depots, stations and
other facilities.

1. Every railroad shall provide and
maintain adequate depots and depot buildings at its regular stations and
establish new stations wherever required, for the accommodation of passengers.
Depot buildings shall be kept clean, well lighted and warm for the comfort and
accommodation of the traveling public.

2. All railroads shall keep and maintain
adequate and suitable freight depots, wherever needed, buildings, switches and
sidetracks for the receiving, handling and delivering of freight transported or
to be transported by such railroad.

1. Every railroad shall, when within its
power to do so, and upon reasonable notice, furnish suitable cars to any and
all persons who may apply therefor, for the transportation of any and all kinds
of freight in carload lots. In case of insufficiency of cars at any time to
meet all requirements, such cars as are available shall be distributed among
the several applicants therefor in proportion to their respective immediate
requirements without discrimination between shippers or competitive or
noncompetitive places. Preference may be given to shipments of livestock and
perishable property.

2. The Commission shall have the power to
enforce reasonable regulations for furnishing cars to shippers, and switching
the same, and for the loading and unloading thereof, and the weighing of the
cars and freight offered for shipment over any line of railroad.

1. Except as provided in subsection 2, any
public utility which installs or modifies any electrical supply line in any
building or facility which it owns or operates, if the building or facility is
open and accessible to the general public, shall perform such installation or
modification as if the National Electrical Code adopted by the National
Fire Protection Association applied to such work, and any local government
which regulates electrical construction shall inspect such work within its
jurisdiction for compliance with this section.

2. Communication equipment and related
apparatus are exempted from the provisions of subsection 1 only if the
equipment and apparatus are owned, installed, operated and maintained by a
telecommunication provider under the jurisdiction of the Commission.

1. The Commission may order an examination
of the condition and management of any public utility under its jurisdiction
which is a telephone company, electric light, heat and power company or a
natural gas company.

2. The Commission and the public utilities
shall establish, and revise annually, a list of not less than 20 persons
qualified to conduct such examinations.

3. If an examination is ordered:

(a) The public utility shall select a person to
conduct the examination from such list; and

(b) The Commission, the public utility and the
person selected shall determine the manner, scope and cost of the examination
and the content and form of reports issued at the conclusion of the
examination.

4. Except where the Commission, after a
hearing, determines that an examination of a public utility is in the public
interest, the Commission shall not order an examination if a prior examination
has been conducted within the preceding 5 years.

5. The costs of an examination are
allowable expenses of the public utility for the purpose of rate making.

NRS 704.1835Commission required to adopt or amend regulations relating to
termination of utility service for gas, water or electricity.

1. For the purposes of protecting the
health of residential customers who receive gas, water or electricity from
public utilities, the Commission shall adopt or amend regulations that:

(a) Establish the criteria that will be used to
determine when a public utility is required to postpone its termination of
utility service to the residence of a residential customer who has failed to
pay for such service. Such criteria may be based in part upon the residential
customer’s ability to pay.

(b) Require a public utility to postpone its
termination of utility service to the residence of a residential customer who
has failed to pay for such service if the residential customer satisfies the
criteria established by the Commission and termination of the utility service
is reasonably likely to threaten the health of an occupant of the residence of
the residential customer.

2. In addition to the regulations adopted
pursuant to subsection 1, for the purposes of regulating public utilities that
provide gas, water or electricity to landlords who pay for the utility service
and who distribute or resell the gas, water or electricity to one or more
residential tenants, the Commission shall adopt or amend regulations to require
a public utility to use its best efforts to post, in a conspicuous location,
notice of the intent of the public utility to terminate utility service because
the landlord has failed to pay for such service. Such notice must provide
sufficient information to allow residential tenants or their occupants to
contact the public utility if termination of the utility service is reasonably
likely to threaten the health of an occupant of the residence of a residential
tenant.

3. A public utility shall not terminate
utility service for gas, water or electricity without complying with the
regulations adopted by the Commission pursuant to this section.

1. Except as otherwise provided in
subsection 8 of NRS 704.110, a public utility which
purchases natural gas for resale may record upon its books and records in
deferred accounts all cost increases or decreases in the natural gas purchased
for resale. Any public utility which uses deferred accounting to reflect
changes in costs of natural gas purchased for resale shall include in its
annual report to the Commission a statement showing the allocated rate of
return for each of its operating departments in Nevada which uses deferred
accounting.

2. A public utility which purchases
natural gas for resale may request approval from the Commission to record upon
its books and records in deferred accounts any other cost or revenue which the
Commission deems appropriate for deferred accounting and which is not otherwise
subject to the provisions of subsection 1. If the Commission approves such a
request, the Commission shall determine the appropriate requirements for
reporting and recovery that the public utility must follow with regard to each
such deferred account.

3. When a public utility which purchases
natural gas for resale files an annual rate adjustment application or an annual
deferred energy accounting adjustment application, the proceeding regarding the
application must include a review of the transactions and recorded costs of
natural gas included in the application. There is no presumption of
reasonableness or prudence for any transactions or recorded costs of natural
gas included in the application, and the public utility has the burden of
proving reasonableness and prudence in the proceeding.

4. A public utility which purchases
natural gas for resale and which has received approval from the Commission to
make quarterly adjustments to a deferred energy accounting adjustment pursuant
to subsection 8 of NRS 704.110 is not eligible to
request an adjustment to its deferred energy accounting adjustment in its
annual rate adjustment application.

1. An electric utility that purchases fuel
or power shall use deferred accounting by recording upon its books and records
in deferred accounts all increases and decreases in costs for purchased fuel
and purchased power that are prudently incurred by the electric utility.

2. An electric utility using deferred
accounting shall include in its annual report to the Commission a statement
showing, for the period of recovery, the allocated rate of return for each of
its operating departments in this State using deferred accounting.

3. Except as otherwise provided in this
section, an electric utility using deferred accounting shall file an annual
deferred energy accounting adjustment application on or before March 1, 2008, and on or before March 1 of each year thereafter.

4. An electric utility that purchases fuel
or power and has received approval from the Commission to make quarterly
adjustments to its deferred energy accounting adjustment pursuant to subsection
10 of NRS 704.110 is not eligible to request an
adjustment to its deferred energy accounting adjustment in its annual deferred
energy accounting adjustment application.

(b) “Costs for purchased fuel and purchased
power” means all costs which are prudently incurred by an electric utility and
which are required to purchase fuel, to purchase capacity and to purchase
energy. The term does not include any costs that the Commission determines are
not recoverable pursuant to subsection 11 of NRS
704.110.

(c) “Electric utility” means any public utility
or successor in interest that:

(1) Is in the business of providing
electric service to customers;

(2) Holds a certificate of public
convenience and necessity issued or transferred pursuant to this chapter; and

(3) In the most recently completed
calendar year or in any other calendar year within the 7 calendar years
immediately preceding the most recently completed calendar year, had a gross
operating revenue of $250,000,000 or more in this State.

Ê The term
does not include a cooperative association, nonprofit corporation, nonprofit
association or provider of electric service which is declared to be a public
utility pursuant to NRS 704.673 and which provides
service only to its members.

NRS 704.190Report and investigation of accident; regulations; forms; public
inspection of report; inadmissibility of report in action for damages.

1. Every public utility operating in this
State shall, whenever an accident occurs in the conduct of its operation
causing death, give prompt notice thereof to the Commission, in such manner and
within such time as the Commission may prescribe. If, in its judgment, the
public interest requires it, the Commission may cause an investigation to be
made forthwith of any accident, at such place and in such manner as the
Commission deems best.

2. Every such public utility shall report
to the Commission, at the time, in the manner and on such forms as the
Commission by its printed rules and regulations prescribes, all accidents
happening in this State and occurring in, on or about the premises, plant,
instrumentality or facility used by any such utility in the conduct of its
business.

3. The Commission shall adopt all
reasonable rules and regulations necessary for the administration and
enforcement of this section. The rules and regulations must require that all
accidents required to be reported pursuant to this section be reported to the
Commission at least once every calendar month by such officer or officers of
the utility as the Commission directs.

4. The Commission shall adopt and utilize
all accident report forms, which must be so designed as to provide a concise
and accurate report of the accident. The report must show the true cause of the
accident. The accident report forms adopted for the reporting of railroad
accidents must, as near as practicable, be the same in design as the railroad
accident report forms provided and used by the Surface Transportation Board.

5. If any accident is reported to the
Commission by the utility as being caused by or through the negligence of an
employee and thereafter the employee is absolved from such negligence by the
utility and found not to be responsible for the accident, that fact must be
reported by the utility to the Commission.

6. Each accident report required to be
made by a public utility pursuant to this section must be filed in the office
of the Commission and there preserved. Each accident report required to be made
by a public utility pursuant to this chapter and each report made by the
Commission pursuant to its investigation of any accident:

(a) Except as otherwise provided in subsection 2
of NRS 703.190, must be open to public
inspection; and

(b) Notwithstanding any specific statute to the
contrary, must not, in whole or in part, be admitted as evidence or used for
any purpose in any suit or action for damages arising out of any matter
mentioned in:

Ê if the
telephone call is received on a line specified for such telephone calls, the
number of which is published in an appropriate telephone directory. The
publication must contain a notice to callers that a telephone call received on
that line concerning an emergency or relating to a service outage is subject to
recording.

2. A telephone call made pursuant to
subsection 1 is not a private conversation and the existence, content,
substance, purport, effect or meaning of the conversation recorded may be
disclosed by any person.

3. As used in this section, “record” means
the acquisition of the contents of a wire communication through the use of a
recording device.

NRS 704.197Public utility to provide name and address of person listed in
records of utility upon request of public administrator or deputy; immunity for
disclosure made in good faith.

1. A public administrator or deputy
designated by the public administrator may submit a written request to a public
utility for the name and address of a person listed in the records of the
public utility if the information is necessary to assist the public
administrator in carrying out the public administrator’s duties pursuant to chapter 253 of NRS.

2. Upon receipt of a written request
pursuant to subsection 1, a public utility shall disclose the name and address
of the person listed in the records of customers of the public utility to the
public administrator or a deputy designated by the public administrator.

3. A disclosure made in good faith
pursuant to subsection 1 does not give rise to any action for damages for the
disclosure of the name and address of a customer by a public utility.

NRS 704.201Investigation by law enforcement agency: Subpoena for name and
address of person listed in records of customers.

1. To further a criminal or civil
investigation, the chief executive officer of a law enforcement agency of this
State or a command officer designated by the chief executive officer may issue
a subpoena to a public utility for the name and address of a person listed in
the records of the customers of the public utility.

2. The subpoena must:

(a) If available, contain the social security
number of the person about whom the subpoena is made;

(b) Contain a statement that the subpoena is made
to further a criminal or civil investigation being conducted by the agency; and

(c) Be signed by the chief executive officer of
the law enforcement agency or the command officer designated by the chief
executive officer.

3. As used in this section, “command
officer” means an officer in charge of a department, division or bureau of the
law enforcement agency.

NRS 704.202Investigation by law enforcement agency: Disclosure of name and
address of person listed in records of customers.

1. Upon receipt of a subpoena by a law
enforcement agency pursuant to NRS 704.201, a
public utility shall disclose the name and address of the person listed in the
records of customers of the public utility to the agency.

2. The public utility may charge a
reasonable fee for any administrative expense related to the disclosure.

3. A disclosure made in good faith
pursuant to subsection 1 does not give rise to any action for damages for the
disclosure of the name and address of a customer by a public utility.

NRS 704.220Powers of Commission: Fixing standards; examination and testing
of product or service.

1. The Commission may, when necessary:

(a) Ascertain and prescribe for each kind of
public utility adequate, convenient and serviceable standards for the measurement
of quality, pressure, voltage or other conditions pertaining to the supply of
the product or service rendered by any public utility; and

(b) Prescribe reasonable regulations for the
examination and testing of such products or service and for the measurement
thereof.

2. Any consumer, user or person served may
have the quality or quantity of the product or the character of any service
rendered by any public utility tested upon the payment of fees fixed by the
Commission, which fees, however, shall be paid by the public utility and repaid
to the complaining party if the quality or quantity of the product or the
character of the service be found by the Commission defective or insufficient
in a degree to justify the demand for testing; or the Commission may apportion
the fees between the parties as justice may require.

[Part 13:109:1919; A 1931, 320; 1955, 421]

NRS 704.223Authorization of purchase or transmission of electricity to
certain businesses to reduce overall cost of electricity to business.

1. If a business with a new industrial
load has been certified by the Office of Economic Development pursuant to NRS 231.139, the Public Utilities
Commission of Nevada may authorize a public utility that furnishes electricity
for the business to purchase or transmit a portion of the electricity provided
to the business to reduce the overall cost of the electricity to the business.
The purchases of electricity may be made by the business with the new
industrial load, by agreement between the public utility and the business or by
the public utility on behalf of the business, and must be made in accordance
with such rates, terms and conditions as are established by the Public
Utilities Commission of Nevada.

2. If additional facilities are determined
by the affected utility to be required as the result of authorization granted
pursuant to subsection 1, the facilities must be constructed, owned and
operated by the affected utility. The business must agree as a condition to the
authorization granted pursuant to subsection 1 to continue its business in
operation in Nevada for 30 years. The agreement must require appropriate
security for the reimbursement of the utility for the remaining portion of the
value of the facilities which has not been depreciated by the utility and will
not be mitigated by use of the facilities for other customers in the event that
the business, or its successor in interest, does not remain in operation for 30
years.

3. Nothing in this section authorizes the
Federal Energy Regulatory Commission to order the purchase or transmittal of electricity
in the manner described in subsection 1.

4. All of the rules, regulations and
statutes pertaining to the Public Utilities Commission of Nevada and public
utilities apply to actions taken pursuant to this section.

5. Any authorization granted by the Public
Utilities Commission of Nevada pursuant to this section must include such terms
and conditions as the Commission determines are necessary to ensure that the
rates or charges assessed to other customers of the public utility do not
subsidize the cost of providing service to the business.

1. The Commission shall by regulation
require each public utility which furnishes electricity to provide lower rates
for electricity for irrigation pumps under a schedule which:

(a) Will be applied:

(1) From March 1 to October 31, inclusive;
and

(2) If the customer concedes to the
utility a right to interrupt services to the customer’s irrigation pumps under
conditions established by the utility and approved by the Commission.

(b) Provides for a maximum rate for interruptible
service per kilowatt-hour of electricity used. The rate must be determined by
dividing the sum of the lowest charge per kilowatt-hour offered by each public
utility and each cooperative association under any of its rate schedules
applicable to its residential, commercial or industrial customers or members in
Nevada by the total number of public utilities and cooperative associations
which furnish electricity in this State. No charges may be included for minimum
billings or costs relating to standby, customers or demand. A public utility or
cooperative association shall provide such information as is necessary for the
Commission to determine the maximum rate for interruptible service pursuant to
this section.

2. As used in this section:

(a) “Cooperative association” means a cooperative
association, nonprofit cooperation or association or any other provider of
services described in this chapter that supplies those services for the use of
its members; and

(b) “Public utility” includes a municipal utility
as defined in NRS 702.060.

NRS 704.230Installation and use of water meters; separate rate for
residential users. [Effective until certain conditions concerning agreement
between Sierra Pacific Power Company and Pyramid Lake Paiute Tribe have been
met.]

1. Except as otherwise provided in this
section or in any special law for the incorporation of a city, it is unlawful
for any public utility, for any purpose or object whatever, in any city or town
containing more than 7,500 inhabitants, to install, operate or use, within such
city or town, any mechanical water meters or similar mechanical device, to
measure the quantity of water delivered to residential water users.

2. A public utility which furnishes water
shall file with the Commission a schedule establishing a separate individual
and joint rate or charge for residential users who have installed water meters
or similar devices to measure the consumption of water.

3. A water meter or similar device may be
installed to measure the consumption of water by a residential customer:

(a) With the consent of the customer; and

(b) To obtain information concerning a
representative sample of residential customers to determine what benefits, if
any, would be derived from the installation and use of water meters for
residential customers generally.

Ê Unless the
residential customer has agreed, in writing, to pay the separate rate, the
public utility shall charge the residential customer for whom a meter is
installed the same amount for water used as if no meter had been installed.

4. A water meter or similar device may be
installed to measure the quantity of water delivered and determine the charge
to residential users of water if:

(a) The owner of the property on which it is
installed consents in writing to the installation, operation and use of the
device; and

(b) The written consent is recorded with the
county recorder of the county in which the property is located.

Ê The written
consent binds any successor in interest to that property to the provisions
thereof.

5. Every newly constructed residential
building which is occupied for the first time after July 1, 1988, must be
equipped with a water meter.

6. This section does not apply to cities
and towns owning and operating municipal waterworks, or to cities and towns
located in a county whose population is 700,000 or more.

NRS 704.230Installation of water
meters required by certain residential buildings; exceptions. [Effective when
certain conditions concerning agreement between Sierra Pacific Power Company
and Pyramid Lake Paiute Tribe have been met.]

1. Every newly constructed residential
building which is occupied for the first time after July 1, 1988, must be
equipped with a water meter.

2. Subsection 1 does not apply to cities
and towns owning and operating municipal waterworks, or to cities and towns
located in a county whose population is 700,000 or more.

NRS 704.235Use by local government of facilities of public utility for
treatment, transportation or exchange of water.

1. The Commission may, upon application of
a local government which provides water services, issue an order directing a
public utility which has facilities for the treatment and transmission of water
to allow the local government to use the facilities to treat, transport or
exchange water, or any combination thereof, to service connections not served
by the public utility. The order may require the public utility to do
everything reasonably necessary, as determined by the Commission, to treat,
transport or exchange water. The Commission shall determine the rates and
charges to be paid by the local government to the public utility for the
services provided. In making this determination, the Commission shall consider
all direct and indirect costs attributable to the treatment, transportation or
exchange of water. The order may impose conditions and requirements on the
local government and public utility to ensure that customers of the utility
continue to receive at just and reasonable rates, an adequate supply of water.

2. A local government which files an
application with the Commission pursuant to subsection 1 shall file a copy of
that application with each city planning commission of an affected incorporated
city and with the regional planning commission of an affected county, if one
exists, for its review and comment.

3. The provisions of this section do not
preclude any local government from bringing an action pursuant to chapter 37 of NRS for the same purpose for which
a local government is allowed to use the facilities of a public utility
pursuant to this section.

NRS 704.240Powers of Commission: Purchase of apparatus for examinations and
tests; entry on premises to make examination and test.

1. The Commission may, in its discretion,
purchase such materials, apparatus and standard measuring instruments for such
examination and tests as it deems necessary.

2. The Commission may enter upon any
premises occupied by any public utility for the purpose of making the
examination and tests provided for in this chapter and set up and use on the
premises any necessary apparatus and appliances and occupy reasonable space
therefor.

3. Any public utility refusing to allow
the examination to be made as herein provided is subject to the penalties
prescribed in NRS 703.380.

[Part 13:109:1919; A 1931, 320; 1955, 421]—(NRS A
1981, 1598)

NRS 704.250Powers of Commission: Standards for maintenance, use and
operation of electric poles, wires, cables and appliances.The Commission is authorized and directed to
prescribe the standards for the maintenance, use and operation of electric
poles, wires, cables and appliances of all public utilities within the State
engaged in the business of furnishing electric power, light and energy.

[Part 13:109:1919; A 1931, 320; 1955, 421]

NRS 704.260Powers of Commission: Requiring repair and construction of
property and use of appliances for safety; regulations.The Commission shall have power, in the
interest of safety or service, after hearing:

1. To determine and order required and necessary
repairs, reinforcements, construction and connection of property, lines,
equipment, appliances, buildings, tracks and all property used or useful in
public utility service.

2. To order the use of safety appliances
in the interest of the public.

1. Regulate the manner in which power and
telephone lines, pipelines and the tracks of any street, steam or electric
railroad or other common carrier cross or connect with any other such lines or
common carriers.

2. Prescribe such regulations and safety
devices, respectively, as may be necessary for the purpose of securing adequate
service and for the protection of the public.

NRS 704.285Violation of law governing interception or disclosure of
communications made by wire or radio: Investigation; hearing; orders to cease
and desist.

1. The Commission, upon its own
information or knowledge or upon a complaint by any person, firm, partnership
or corporation that any public utility is acting in violation of the provisions
of NRS 179.410 to 179.515, inclusive, or NRS 200.610 to 200.690, inclusive, or is knowingly
allowing another person to violate those provisions, shall proceed without
notice to make an investigation of the information or complaint.

2. If, after its investigation, the
Commission determines that there is probable cause to believe that the utility
is acting in violation of the provisions of NRS
179.410 to 179.515, inclusive, or NRS 200.610 to 200.690, inclusive, or allowing another to
act in violation of those provisions, the Commission shall forthwith issue a
cease and desist order to the utility. The order is permanent unless the
utility, within 20 days after receipt of the order, files a written request for
a hearing with the Commission.

3. When a written request for a hearing is
filed pursuant to subsection 2, the Commission shall conduct the hearing
pursuant to the provisions of NRS 703.320
to 703.370, inclusive.

4. If, as the result of a hearing, it is
determined that the utility is acting in violation of the provisions of NRS 179.410 to 179.515, inclusive, or NRS 200.610 to 200.690, inclusive, or allowing another to
act in violation of those provisions, the Commission shall issue a permanent
cease and desist order and notify the district attorney of the county where the
violation occurred of its determination.

5. This section is applicable whether or
not the utility involved is required to have a certificate of public
convenience and necessity from the Commission.

1. After an investigation initiated either
upon the Commission’s own motion or as the result of the filing of a formal
application or complaint by the Department of Transportation, the board of
county commissioners of any county, the town board or council of any town or
municipality, or any railroad company, the Commission may order for the safety
of the traveling public:

(a) The elimination, alteration, addition or
change of a highway crossing or crossings over any railroad at grade, or above
or below grade, including its approaches and surface.

(b) Changes in the method of crossing at grade,
or above or below grade.

(c) The closing of a crossing and the
substitution of another therefor.

(d) The removal of obstructions to the public
view in approaching any crossing.

(e) Such other details of use, construction and
operation as may be necessary to make grade-crossing elimination, changes and
betterments for the protection of the public and the prevention of accidents
effective.

2. The Commission shall order that the
cost of any elimination, removal, addition, change, alteration or betterment so
ordered must be divided and paid in such proportion by the State, county, town
or municipality and the railroad or railroads interested as is provided
according to the circumstances occasioning the cost in NRS
704.305.

3. If the Commission chooses to conduct a
hearing before issuing an order pursuant to subsection 1, all costs incurred by
reason of the hearing, including, but not limited to, publication of notices,
reporting, transcripts and rental of hearing room, must be apportioned 50
percent to the governmental unit or units affected and 50 percent to the
railroad or railroads.

1. The entire cost of a new grade crossing
or a new grade separation, including any automatic protection devices that may
be required, where no existing grade crossing located at or in the immediate
vicinity of the new grade crossing or grade separation structure is eliminated,
shall be apportioned to and borne by the governmental unit or units affected if
a governmental unit initiates the proceeding, or by the railroad or railroads
if the proceeding is initiated by a railroad.

2. Where a new grade separation will
directly result in the elimination of an existing grade crossing located at or
in the immediate vicinity of the grade separation or an existing grade
separation is reconstructed, 13 percent of the cost shall be apportioned to and
borne by the railroad or railroads and the remainder of the cost shall be
apportioned to and borne by the governmental unit or units affected. If a grade
separation structure provides either more highway lanes or space for more
highway lanes than are in place on the existing highway grade crossing being
eliminated, the railroad share of cost shall be limited to 13 percent of the
cost of constructing a grade separation structure having the same number of
highway lanes that were in place on the highway prior to construction of the
grade separation structure.

3. Where automatic protection devices are
added or materially altered, changed or improved at an existing grade crossing,
87 percent of the cost of such added, altered, changed or improved automatic
protection devices shall be apportioned to and borne by the governmental unit
or units affected and 13 percent of the cost shall be apportioned to and borne
by the railroad or railroads.

4. The cost of maintaining any new, added
or materially altered, changed or improved grade crossing automatic protection
devices and appurtenances shall be apportioned 50 percent to the governmental
unit or units affected and 50 percent to the railroad or railroads.

5. The maintenance of a new or
reconstructed grade separation structure shall be performed by the governmental
unit or units affected, and the cost thereof shall be apportioned to and be
borne by the governmental unit or units affected, except that the maintenance
of waterproofing, ballast, ties, tracks and other railroad equipment shall be
performed by the railroad or railroads, and the cost of such maintenance shall
be apportioned to and borne by the railroad or railroads.

6. The railroad shall maintain at its
expense the surface of grade crossings to a distance of 2 feet on the outer
side of each outermost rail, and such maintenance shall include, but is not
limited to, the railroad roadbed, rails and all appurtenant facilities.

7. On projects where federal funds are
used, apportionment and division of costs shall be in accordance with federal
law and the rules, regulations and orders of the federal agency administering
such law to the extent that such law, rule or regulations and orders require a
different apportionment of costs than is set forth in this section. The
provisions of this section may not otherwise be invoked on projects to the
extent that such federal law, rules, regulations and orders are applicable.

8. The provisions of this section impose
no limitation upon the right of governmental units or railroads to negotiate
agreements apportioning costs. To the extent that costs are apportioned by such
agreement, the Commission shall order that costs be apportioned and borne in
the manner provided by such agreement.

NRS 704.309Railroads: Commission to levy and collect annual assessments;
fee for delinquent assessment; sale or transfer of certificate of public convenience
and necessity; action for collection of assessment or fee.

1. The Commission shall levy and collect
an annual assessment from each railroad subject to the jurisdiction of the
Commission that transports cargo into, out of or through this State to support
the activities of the Commission relating to railroad safety.

2. The annual assessment levied on
railroads:

(a) Must be equal to the costs incurred by the
Commission that are not offset by the fees paid pursuant to NRS 459.512.

(b) Must be not more than 1 cent per ton of cargo
transported by the railroads into, out of or through this State during the
immediately preceding calendar year.

3. On or before September 1 of each year,
the Commission shall:

(a) Calculate the amount of the assessment to be
levied pursuant to this section for the previous fiscal year; and

(b) Mail to each railroad subject to the
provisions of this section to the current address of the railroad on file with
the Commission a notice indicating the amount of the assessment. The failure of
the Commission to so notify a railroad does not invalidate the assessment.

4. An assessment levied pursuant to this
section is due on or before November 1 of each year. Each railroad that is
subject to the provisions of this section which fails to pay the assessment on
or before December 1, shall pay, in addition to the assessment, a fee of 1
percent of the total unpaid balance for each month or portion thereof that the assessment
is delinquent or $10, whichever is greater, except that no fee may exceed
$1,000 for each delinquent payment.

5. If a railroad sells or transfers its
certificate of public convenience and necessity or sells or transfers
substantially all of its assets, the Commission shall calculate, levy and
collect the accrued assessment for the current year not later than 30 days
after the sale or transfer, unless the purchaser or transferee has assumed
liability for the assessment. For the purposes of this subsection, the
jurisdiction of the Commission over the sale or transfer of a railroad
continues until the assessment of the railroad has been paid.

6. The Commission may bring an appropriate
action in its own name for the collection of any assessment and fee that is not
paid pursuant to this section.

NRS 704.310Sale of surplus light, heat or power by person not public
utility; approval by Commission.

1. Whenever any person, company,
corporation or association which is not engaged in business as a public utility
as defined by this chapter, and which does not furnish, sell, produce or
deliver to others light, heat or power, under a franchise received from this
State or from any county or municipality within this State, is able, from any
surplus beyond the needs or requirements of its own business, and desires to
sell, produce, furnish and deliver to any other person, company, association or
corporation any light, heat or power, the person, company, association or
corporation shall apply to the Commission for authority to sell, produce,
furnish or deliver any such surplus light, heat or power, and shall submit to
the Commission the proposed contract by which such light, heat or power is to
be sold, furnished, produced or delivered.

2. The Commission shall thereupon
ascertain whether it is advisable in the public interest that the contract be
executed and, if the Commission approves the contract, then the person,
company, corporation or association has the right to furnish, sell, produce and
deliver such light, heat or power in accordance with the terms of the contract,
and does not thereby become a public utility within the meaning of this
chapter, nor is it subject to the jurisdiction of the Commission.

NRS 704.320Purchase of surplus water or electric current by public utility
for resale; application filed with Commission; approval of application; seller
not deemed public utility.

1. Every person, company, corporation or
association which is engaged in business in this state as a public utility
shall have, and is hereby given, the right to purchase water or electric
current for its use as such public utility from any other person or corporation
having for sale a surplus of such water or electric current.

2. Any public utility desiring to purchase
such water or electric current for resale or for purposes other than its own
use shall file an application with the Commission, setting forth:

(a) The terms and conditions of the proposed
purchase of such electric current or water.

(b) The person or corporation from whom such
purchase is proposed to be made.

(c) The duration of the contract to purchase.

(d) Such other information relative thereto and
in the possession of the applicant as the Commission shall prescribe.

3. If the Commission shall find it
desirable in the public interest that the purchase be made, it shall approve
the application, and upon approval the public utility may make and execute the
contract of purchase.

4. The person or corporation selling such
water or electric current to the public utility under the contract approved by
the Commission shall not thereby become, or be deemed to be, a public utility
within the meaning of any statute of this state, nor shall it by virtue of such
contract be deemed to be within or subject to the jurisdiction of the
Commission in any respect whatsoever, nor shall it thereby be deemed to be in
any sense a public service corporation, or engaged in a public service.

5. The terms and provisions of this
section shall be taken and considered to be a part of any such contract, and
the faith of the State of Nevada is hereby pledged against any alteration,
amendment or repeal of this section during the existence of any such contract,
or any extension thereof, approved by the Commission.

NRS 704.322“Security” defined.As
used in NRS 704.322 to 704.328,
inclusive, “security” means any note, stock, treasury stock, bond, debenture or
other evidence of interest in or indebtedness of a person, firm or corporation.

(Added to NRS by 1957, 444)

NRS 704.323Issuance of security or assumption of obligation by privately
owned public utility subject to authorization by Commission; exceptions.

1. No privately owned public utility
organized under the laws of and operating in the State of Nevada shall issue
any security, or assume any obligation as guarantor, endorser, surety or
otherwise, in respect of any security of any other person, firm or corporation,
unless and until, and only to the extent, authorized by a written order of the
Commission.

2. The provisions of subsection 1 shall
not apply to the issue or renewal of, or assumption of liability on, a note or
draft maturing not more than 1 year after the date of such issue, renewal or
assumption of liability, but in the case of privately owned electric or
combination electric utilities subject to the jurisdiction of the Commission
the provisions of subsection 1 shall apply to all security issues, or renewals
or assumption of obligations as guarantor, endorser, surety or otherwise,
having a maturity of 1 year or less where the combined sum of such security
issues, renewals or assumptions exceeds $1,000,000 or 5 percent of the par
value of the other securities of the public utility then outstanding. In case
of securities having no par value the par value for purposes of this subsection
shall be the fair market value as of the date of issue of the privately owned
or combination electric utilities, whichever sum is greater.

1. Upon receipt of an application for an
order authorizing the issuance of any security or the assumption of any
obligation in respect to any security of another, the Commission may grant the
application in whole or in part and with such modifications and upon such terms
and conditions as it may find necessary or appropriate.

2. The Commission may authorize the
issuance of a variable-rate security and it may authorize the public utility to
use a method for accounting and rate making for an existing or new
variable-rate security which ensures that the recovery of the utility’s
expenses for issuing or maintaining that security from the rates charged to its
customers will equal the interest or dividends actually paid on the security.

3. The Commission shall not require a
public utility to issue or maintain a variable-rate security if the recovery of
the utility’s expenses for issuing or maintaining that security from the rates
charged to its customers does not equal the interest or dividends actually paid
on the security.

4. The Commission may from time to time
make such supplemental orders in the premises as it may find necessary or
appropriate. The supplemental order may modify the provisions of any previous
order as to the particular purposes, uses and extent to which, or the
conditions under which, any security theretofore authorized or the proceeds
thereof may be applied.

5. The Commission shall not make any order
or supplemental order granting any application hereunder unless it finds that
the issue or assumption:

(a) Is for some lawful object, within the
corporate purposes of the applicant and compatible with the public interest,
which is necessary or appropriate for or consistent with the proper performance
by the applicant of service as a public utility and which will not impair its
ability to perform that service; and

(b) Is reasonably necessary or appropriate for
those purposes.

6. The Commission shall not authorize the
capitalization of the right to be a corporation or any franchise, permit or
contract for consolidation, merger or lease in excess of the amount, exclusive
of any tax or annual charge, actually paid as the consideration for the right,
franchise, permit or contract.

NRS 704.325Limitations on application of security or proceeds.No public utility shall, without the consent
of the Commission, apply any security or any proceeds thereof to any purpose
not specified in the Commission’s order, or supplemental order, or to any
purpose in excess of the amount allowed for such purpose in such order, or
otherwise in contravention of such order.

(Added to NRS by 1957, 445)

NRS 704.326Guarantee or obligation of State not implied.Nothing in NRS 704.322
to 704.325, inclusive, shall be construed to imply
any guarantee or obligation on the part of the State of Nevada in respect of
any securities to which the provisions of such sections relate.

(Added to NRS by 1957, 445)

NRS 704.327Payment of necessary expenses of Commission by public utility.All necessary expenses incurred by the
Commission in the administration of NRS 704.322 to 704.326, inclusive, shall be charged against and
collected from the public utility by the Commission.

NRS 704.329Mergers, acquisitions or changes in control of public utility or
entity that holds controlling interest in public utility: Authorization of
Commission required; time within which Commission must act; exceptions.

1. Except as otherwise provided in
subsection 6, a person shall not merge with, directly acquire, indirectly
acquire through a subsidiary or affiliate, or otherwise directly or indirectly
obtain control of a public utility doing business in this State or an entity
that holds a controlling interest in such a public utility without first
submitting to the Commission an application for authorization of the proposed
transaction and obtaining authorization from the Commission.

2. Any transaction that violates the
provisions of this section is void and unenforceable and is not valid for any
purpose.

3. Before authorizing a proposed
transaction pursuant to this section, the Commission shall consider the effect
of the proposed transaction on the public interest and the customers in this
State. The Commission shall not authorize the proposed transaction unless the
Commission finds that the proposed transaction:

(a) Will be in the public interest; and

(b) Complies with the provisions of NRS 704.7561 to 704.7595,
inclusive, if the proposed transaction is subject to those provisions.

4. The Commission may base its
authorization of the proposed transaction upon such terms, conditions or
modifications as the Commission deems appropriate.

5. If the Commission does not issue a
final order regarding the proposed transaction within 180 days after the date on
which an application or amended application for authorization of the proposed
transaction was filed with the Commission, and the proposed transaction is not
subject to the provisions of NRS 704.7561 to 704.7595, inclusive, the proposed transaction shall
be deemed to be authorized by the Commission.

6. The provisions of this section do not
apply to:

(a) The transfer of stock of a public utility
doing business in this State or to the transfer of the stock of an entity that
holds a controlling interest in such a public utility, if a transfer of not
more than 25 percent of the common stock of such a public utility or entity is
proposed.

(b) Except as otherwise provided in this
paragraph, a proposed transaction involving a public utility doing business in
this State providing telecommunication services or an entity that holds a
controlling interest in such a public utility if, in the most recently
completed calendar year, not more than 10 percent of the gross operating
revenue of the public utility or the entity that holds a controlling interest
in the public utility was derived from intrastate telecommunication services
provided to retail customers in this State by the public utility. A person who
proposes such a transaction shall file with the Commission written notice of
the proposed transaction. The notice must identify each party to the proposed
transaction and include a verified statement that not more than 10 percent of
the gross operating revenue of the public utility or the entity that holds a
controlling interest in the public utility was derived from intrastate
telecommunication services provided to retail customers in this State by the
public utility in the most recently completed calendar year. Upon filing the
notice required by this paragraph, the person may submit a written request that
the Regulatory Operations Staff of the Commission and the Consumer’s Advocate
waive the right pursuant to subparagraph (1) to request an order from the
Commission requiring the person to file an application for authorization of the
proposed transaction. If the Regulatory Operations Staff and the Consumer’s
Advocate waive in writing the right to request an order from the Commission
requiring the person to file an application, the proposed transaction is
exempted from the provisions of this section. Such a proposed transaction is
not exempted from the provisions of this section if:

(1) Not later than 30 days after the date
on which the person undertaking the proposed transaction files the notice
required by this paragraph, the Regulatory Operations Staff of the Commission
or the Consumer’s Advocate requests an order from the Commission requiring the
person to file an application for authorization of the proposed transaction,
and has not waived its right to request such an order;

(2) The request alleges in sufficient
detail that the proposed transaction may materially affect retail customers of
public utilities in this State; and

(3) The Commission issues an order
requiring the person to file an application for authorization of the proposed
transaction.

(c) A public utility engaged in the business of
furnishing, for compensation, water or services for the disposal of sewage, or
both, to persons within this State if the utility:

(1) Serves 15 persons or less; and

(2) Operates in a county whose population
is 700,000 or more.

(d) A provider of commercial mobile radio
service.

7. As used in this section:

(a) “Person” means:

(1) A natural person;

(2) Any form of business or social
organization and any other nongovernmental legal entity, including, without limitation,
a corporation, partnership, association, trust or unincorporated organization;

(3) A government or an agency or
instrumentality of a government, including, without limitation, this State or
an agency or instrumentality of this State; and

(4) A political subdivision of this State
or of any other government or an agency or instrumentality of a political
subdivision of this State or of any other government.

(b) “Transaction” means a merger, acquisition or
change in control described in subsection 1.

NRS 704.330Public utility to obtain certificate of public convenience and
necessity; exceptions; terms and conditions; orders to cease and desist;
duplication of service; boundaries of certain
service areas.

1. Except as otherwise provided in this
section, any person owning, controlling, operating or maintaining or having any
contemplation of owning, controlling or operating any public utility shall,
before beginning such operation or continuing operations or construction of any
line, plant or system or any extension of a line, plant or system within this
State, obtain from the Commission a certificate that the present or future
public convenience or necessity requires or will require such continued
operation or commencement of operations or construction.

2. The provisions of this section do not
require a public utility to secure such a certificate for any extension within
any town or city within which it lawfully has commenced operations or for any
other extension if the extension:

(a) Is undertaken by a small-scale provider of
last resort to serve a telephone toll station or stations to be located not
more than 10 miles from existing telephone facilities;

(b) Is undertaken for any purpose by a
competitive supplier; or

(c) Remains within the boundaries of the service
area which have been established by the Commission for its railroad, line,
plant or system, and not then served by a public utility of like character.

3. Upon the granting of any certificate of
public convenience, the Commission may make such an order and prescribe such
terms and conditions for the location of lines, plants or systems to be
constructed, extended or affected as may be just and reasonable.

4. When a complaint has been filed with
the Commission alleging that any utility is being operated without a
certificate of public convenience and necessity as required by this section, or
when the Commission has reason to believe that any provision of this section is
being violated, the Commission shall investigate such operations and the Commission
may, after a hearing, make its order requiring the owner or operator of the
utility to cease and desist from any operation in violation of this section.
The Commission shall enforce compliance with such an order under the powers
vested in the Commission by law.

5. If any public utility in constructing
or extending its line, plant or system interferes or is about to interfere with
the operation of the line, plant or system of any other public utility already
constructed, the Commission, on complaint of the public utility claiming to be
injuriously affected, after hearing, may make such an order prohibiting the
construction or extension, or prescribing such terms and conditions for the
location of the lines, plants or systems affected, as to it may seem just and
reasonable.

6. Except as otherwise provided in
subsections 7 and 8, if the Commission, after a hearing upon its own motion or
upon complaint, finds that there is or will be a duplication of service by
public utilities in any area, the Commission shall either issue a certificate
of public convenience and necessity assigning specific territories to one or to
each of such utilities, or, by certificate of public convenience and necessity,
otherwise define the conditions of rendering service and construction,
extensions within such territories, and shall order the elimination of such
duplication, all upon such terms as are just and reasonable, having due regard
to due process of law and to all the rights of the respective parties and to
public convenience and necessity.

7. The Commission may allow and regulate a
duplication of service by telecommunication providers in an area where the
provider of last resort is a small-scale provider of last resort if the
Commission finds that the competition should occur and that any duplication of
service is reasonable.

8. The Commission:

(a) Shall allow a duplication of service or
facilities by telecommunication providers in an area where the provider of last
resort is a competitive supplier; and

(b) On or after January 1, 2012, shall not
regulate a duplication of service or facilities by telecommunication providers
in an area where the provider of last resort is a competitive supplier.

9. A competitive supplier that is a
provider of last resort:

(a) Must provide to the Commission a description
of and map depicting the boundaries of the service area in which the Commission
has designated the competitive supplier as the provider of last resort; and

(b) May change the boundaries of that service
area by filing an application with the Commission. The application shall be
deemed approved if the Commission does not act on the application within 120
days after the date the application is filed with the Commission.

NRS 704.340Municipalities and certain trusts for furtherance of public
functions not required to obtain certificates; approval and jurisdiction of
Commission.

1. Subject to the provisions of subsection
3, a municipality constructing, leasing, operating or maintaining any public
utility, or a trust created for the benefit and furtherance of any public
function pursuant to the provisions of general or special law, is not required
to obtain a certificate of public convenience, but any trust so created which
undertakes the operation of a public utility shall first submit a certified
copy of the trust documents or prepared trust documents to the Commission
together with a detailed explanation of the purposes, scope, area to be
affected and such other pertinent information necessary to assist the
Commission in making a determination as to whether the service presently being
offered by any existing public utility would be unreasonably impaired by the
approval of such trust documents.

2. The Commission shall, after
investigation and hearing on any contemplated trust coming within the
provisions of subsection 1, submit a report of its findings and reasons
therefor to the State and each political subdivision within which such trust
contemplates operation. Such trust does not become effective unless and until
written approval has been given by the Commission.

3. If a municipality assumes operation and
control of a package plant for sewage treatment pursuant to the provisions of NRS 445A.555 or subsection 2 or 3 of NRS 268.4105, the plant is exempt from
the jurisdiction of the Commission only for the period of time the municipality
continues the maintenance and operation of the plant. The certificate of public
convenience as it applies to that plant is suspended for that period of time.

NRS 704.350Prerequisites to issuance of certificate.Every applicant for a certificate of public
convenience shall furnish such evidence of its corporate character and of its
franchise or permits as may be required by the Commission.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955,
407]

NRS 704.355Considerations for issuance of certificate to certain utilities
providing water service or sewage service.In
determining whether to issue a certificate of public convenience and necessity
to a new public utility that authorizes the construction, ownership, control or
operation of any line, plant or system for the purpose of furnishing water for
municipal, industrial or domestic purposes or services for the disposal of
sewage, or both, the Commission shall consider whether another public utility
or person is ready, willing and able to provide the services in the geographic
area proposed by the applicant for the certificate.

NRS 704.360Conduct of investigations and hearings.All
hearings and investigations under NRS 704.3296 to 704.410, inclusive, shall be conducted substantially
as is provided for hearings and investigations of tolls, charges and service.

NRS 704.370Issuance or refusal of certificate: Terms and conditions;
hearing required for certain applications; power of Commission to dispense with
hearing for certain applications.

1. The Commission shall have the power,
after hearing, to issue or refuse such certificate of public convenience, or to
issue it for the construction of a portion only of the contemplated line, plant
or systems, or extension thereof, and may attach thereto such terms and
conditions as, in its judgment, the public convenience and necessity may
require.

2. Except as otherwise provide in
subsection 3, the Commission, in its discretion and after investigation, may
dispense with the hearing on the application if, upon the expiration of the
time fixed in the notice thereof, no protest against the granting of the
application has been filed by or on behalf of any interested person.

3. The Commission shall not dispense with
the hearing on the application of an electric utility.

NRS 704.380Public utility beginning, prosecuting or completing new
construction without certificate: Levy of tolls and charges prohibited and
void; exceptions.

1. Except as otherwise provided in
subsection 2, any public utility beginning, prosecuting or completing any new
construction in violation of this chapter is not permitted to levy any tolls or
charges for services rendered, and all such tolls and charges are void.

2. The provisions of subsection 1 do not
apply to a competitive supplier that is operating in accordance with the
provisions of this chapter governing telecommunication providers.

NRS 704.390Discontinuance, modification or restriction of service:
Authorization of Commission required; hearing required for certain
applications; power of Commission to dispense with hearing for certain
applications.

1. Except as otherwise provided in NRS 704.68861 to 704.68887,
inclusive, it is unlawful for any public utility to discontinue, modify or
restrict service to any city, town, municipality, community or territory theretofore
serviced by it, except upon 30 days’ notice filed with the Commission,
specifying in detail the character and nature of the discontinuance or
restriction of the service intended, and upon order of the Commission, made
after hearing, permitting such discontinuance, modification or restriction of
service.

2. Except as otherwise provided in
subsection 3, the Commission, in its discretion and after investigation, may
dispense with the hearing on the application for discontinuance, modification
or restriction of service if, upon the expiration of the time fixed in the
notice thereof, no protest against the granting of the application has been
filed by or on behalf of any interested person.

3. The Commission shall not dispense with
the hearing on the application of an electric utility.

NRS 704.400Order of Commission prima facie lawful from date of order.Every order refusing or granting any
certificates of public convenience, or granting or refusing permission to
discontinue, modify or restrict service, as provided in NRS
704.3296 to 704.410, inclusive, is prima facie
lawful from the date of the order until changed or modified by the order of the
Commission or pursuant to NRS 703.373
to 703.376, inclusive.

NRS 704.410Transfer of certificate: Authorization of Commission required;
hearing required for certain transfers; power of Commission to dispense with
hearing for certain transfers; factors considered; effectiveness of certificate
after transfer.

1. Any public utility subject to the
provisions of NRS 704.001 to 704.7595, inclusive, to which a certificate of public
convenience and necessity has been issued pursuant to NRS
704.001 to 704.7595, inclusive, may transfer
the certificate to any person qualified under NRS
704.001 to 704.7595, inclusive. Such a
transfer is void and unenforceable and is not valid for any purpose unless:

(a) A joint application to make the transfer has
been made to the Commission by the transferor and the transferee or the
transfer is incident to a transaction that is subject to an application under NRS 704.329 approved by the Commission; and

(b) The Commission has authorized the substitution
of the transferee for the transferor. If the transferor is an electric utility,
the Commission shall not authorize the transfer unless the transfer complies
with the provisions of NRS 704.7561 to 704.7595, inclusive.

2. The Commission:

(a) Shall conduct a hearing on a transfer
involving an electric utility. The hearing must be noticed and conducted in the
same manner as other contested hearings before the Commission.

(b) May direct that a hearing be conducted on a
transfer involving any other public utility. If the Commission determines that
such a hearing should be held, the hearing must be noticed and conducted in the
same manner as other contested hearings before the Commission. The Commission
may dispense with such a hearing if, upon the expiration of the time fixed in
the notice thereof, no protest to the proposed transfer has been filed by or on
behalf of any interested person.

3. In determining whether the transfer of
a certificate of public convenience and necessity to an applicant transferee
should be authorized, the Commission must take into consideration:

(a) The utility service performed by the
transferor and the proposed utility service of the transferee;

(b) Other authorized utility services in the
territory for which the transfer is sought;

(c) Whether the transferee is fit, willing and
able to perform the services of a public utility and whether the proposed
operation will be consistent with the legislative policies set forth in NRS 704.001 to 704.7595,
inclusive; and

(d) Whether the transfer will be in the public
interest.

4. The Commission may make such
amendments, restrictions or modifications in a certificate upon transferring it
as the public interest requires.

5. No transfer is valid beyond the life of
the certificate transferred.

NRS 704.440Investigation and ascertainment of value of property of public
utility; exceptions.

1. Except as otherwise provided in
subsection 2, the Commission may, in its discretion, investigate and ascertain
the value of all property of every public utility actually used and useful for
the convenience of the public. In making such an investigation, the Commission
may avail itself of all information contained in the assessment rolls of the
various counties and the public records and files of all state departments,
offices and commissions, and any other information obtainable.

2. The provisions of subsection 1 do not
apply to a competitive supplier.

NRS 704.595Civil penalty for violation of regulations adopted in conformity
with Natural Gas Pipeline Safety Act of 1968; compromise and recovery of
penalty.

1. Any person who violates any provision
of any regulation adopted by the Commission in conformity with the Natural Gas
Pipeline Safety Act of 1968, as amended, 49 U.S.C. §§ 60101 et seq., or with a
federal regulation adopted pursuant thereto, shall be subject to a civil
penalty not to exceed $100,000 for each violation for each day that the
violation persists, but the maximum civil penalty must not exceed $1,000,000
for any related series of violations. Unless compromised, the amount of any
such civil penalty must be determined by a court of competent jurisdiction.

2. Any civil penalty may be compromised by
the Commission. In determining the amount of the penalty, or the amount agreed
upon in compromise, the appropriateness of the penalty to the size of the
business of the person charged, the gravity of the violation, and the good
faith of the person charged in attempting to achieve compliance, after
notification of a violation, must be considered.

3. The amount of the penalty, when finally
determined, or the amount agreed upon in compromise, may be deducted from any
sum owing by the State to the person charged or may be recovered in a civil
action in any court of competent jurisdiction.

4. Evades the answer to any question where
the fact inquired of is within the knowledge of the officer, agent or employee;
or

5. Upon proper demand, willfully fails or
refuses to exhibit to the Commission or any Commissioners, or any person also
authorized to examine the same, any book, paper or account of such public
utility which is in the possession or under the control of the officer, agent
or employee,

NRS 704.630Additional civil remedies of Commission.In addition to all the other remedies provided
by this chapter for the prevention and punishment of any and all violations of
the provisions thereof and of all orders of the Commission, the Commission may
compel compliance with the provisions of this chapter and with the orders of
the Commission by proceedings in mandamus, injunction or by other civil
remedies.

[38:109:1919; 1919 RL p. 3166; NCL § 6139]

NRS 704.635Order by Commission to cease and desist.When a complaint has been filed with the
Commission alleging that a person is providing a service which requires a
certificate of public convenience and necessity, or when the Commission has
reason to believe that any provision of NRS 704.005
to 704.754, inclusive, or 704.9901
is being violated, the Commission shall investigate the operation and may,
after a hearing, issue an order requiring that the person cease and desist from
any operation in violation of NRS 704.005 to 704.754, inclusive, or 704.9901.
The Commission shall enforce the order under the powers vested in the
Commission by NRS 704.005 to 704.754,
inclusive, or 704.9901 or other law.

NRS 704.638Unlawful to post sign on device of public utility used to
support line for telephone or electricity.It
is unlawful for any person to post any advertising sign, display or device,
including a temporary political sign, on any pole, support or other device of a
public utility which is used to support a telephone or electric transmission
line.

1. Operates any public utility to which NRS 704.005 to 704.754,
inclusive, 704.9901 and 704.993
to 704.999, inclusive, apply without first
obtaining a certificate of public convenience and necessity or in violation of
its terms;

5. Procures, aids or abets any person in
the failure to obey the order, decision or regulation; or

6. Advertises, solicits, proffers bids or
otherwise holds himself, herself or itself out to perform as a public utility
in violation of any of the provisions of NRS 704.005
to 704.754, inclusive, 704.9901
and 704.993 to 704.999,
inclusive,

NRS 704.645Remedies of State cumulative; election of remedies.The remedies of the State provided for in this
chapter are cumulative, and no action taken by the Commission constitutes an
election on the part of the State or any of its officers to pursue any remedy
under this chapter to the exclusion of any other remedy for which provision is
made in this chapter.

(Added to NRS by 1969, 1000)

CUSTOMER DEPOSITS

NRS 704.655Public utility required to pay interest on deposits made by
customers; penalty.

1. Every public utility which furnishes
the public with light and power, telephone service, gas or water, or any of
them, shall pay to every customer from whom any deposit has been required
interest on the deposit at the rate fixed for 6-month Treasury bills of the
United States at the first auction:

(a) On or after December 1 of any year for the
period from January 1 to June 30 of the succeeding year; or

(b) On or after June 1 of any year for the period
from July 1 to December 31 of that year,

Ê from the date
of deposit until the date of settlement or withdrawal of deposit. Where the
deposit remains for 1 year or more and the person making the deposit continues
to be a customer, the interest on the deposit must be either paid in cash to
the depositor or applied on current bills for the use of the service provided
by the public utility, as the depositor may desire.

2. Any public utility which fails, refuses
or neglects to pay the interest provided in subsection 1 in the manner required
by subsection 1 is guilty of a misdemeanor.

NRS 704.660Public utility supplying water required to provide sufficient
water for protection from fire at reasonable rates; regulations by Commission.

1. Any public utility which furnishes, for
compensation, any water for domestic purposes shall furnish each city, town,
village or hamlet which it serves with a reasonably adequate supply of water at
reasonable pressure for fire protection and at reasonable rates, all to be
fixed and determined by the Commission.

2. The duty to furnish a reasonably
adequate supply of water provided for in subsection 1 includes the laying of
mains with all necessary connections for the proper delivery of the water for
fire protection, the installation of appliances to assure a reasonably
sufficient pressure for fire protection and the maintenance of fire hydrants
that are the property of the public utility and located either within a public
right-of-way or upon private property to which the public utility is permitted
reasonable access without cost.

3. The Commission may fix and determine
reasonable rates and prescribe all installations and appliances adequate for
the proper utilization and delivery of water for fire protection. The
Commission may adopt regulations and practices to be followed by a utility in
furnishing water for fire protection, and has complete jurisdiction of all
questions arising under the provisions of this section.

4. All proceedings under this section must
be conducted pursuant to NRS 703.320 to
703.370, inclusive, and 704.005 to 704.645,
inclusive. All violations of any order made by the Commission under the
provisions of this section are subject to the penalties for similar violations
of the provisions of NRS 704.005 to 704.645, inclusive.

5. This section applies to and governs all
public utilities furnishing water for domestic use on March 26, 1913, unless
otherwise expressly provided in the charters, franchises or permits under which
those utilities are acting. Each public utility which supplies water for
domestic uses after March 26, 1913, is subject to the provisions of this
section, regardless of any conditions to the contrary in any charter, franchise
or permit of whatever character granted by any county, city, town, village or
hamlet within this State, or of any charter, franchise or permit granted by any
authority outside this State.

NRS 704.661Certain public utilities furnishing water or sewage service
required to submit resource plan for meeting demand made on system; request for
waiver from submission of resource plan; contents and procedure; recovery of
certain costs and expenditures relating to plan.

1. Except as otherwise provided in this
section, a public utility that furnishes water for municipal, industrial or
domestic purposes or services for the disposal of sewage, or both, and which
had an annual gross operating revenue of $1,000,000 or more for at least 1 year
during the immediately preceding 3 years shall, on or before March 1 of every
third year, in the manner specified by the Commission, submit a plan to the
Commission to provide sufficient water or services for the disposal of sewage
to satisfy the demand made on its system by its customers. If a public utility
furnishes both water and services for the disposal of sewage, its annual gross
operating revenue for each service must be considered separately for
determining whether the public utility meets the requirements of this
subsection for either service.

2. A public utility may request a waiver
from the requirements of subsection 1 by submitting such a request in writing
to the Commission not later than 180 days before the date on which the plan is
required to be submitted pursuant to subsection 1. A request for a waiver must
include proof satisfactory that the public utility will not experience a
significant increase in demand for its services or require the acquisition or
construction of additional infrastructure to meet present or future demand
during the 3-year period covered by the plan which the public utility would
otherwise be required to submit pursuant to subsection 1.

3. The Commission shall, not later than 45
days after receiving a request for a waiver pursuant to subsection 2, issue an
order approving or denying the request. The Commission shall not approve the
request of a public utility for a waiver for consecutive 3-year periods.

4. The Commission:

(a) Shall adopt regulations to provide for the
contents of and the method and schedule for preparing, submitting, reviewing
and approving a plan submitted pursuant to subsection 1; and

(b) May adopt regulations relating to the
submission of requests for waivers pursuant to subsection 2.

5. Not later than 180 days after a public
utility has filed a plan pursuant to subsection 1, the Commission shall issue
an order accepting the plan as filed or specifying any portion of the plan it
finds to be inadequate.

6. If a plan submitted pursuant to
subsection 1 and accepted by the Commission pursuant to subsection 5 and any
regulations adopted pursuant to subsection 4 identifies a facility for
acquisition or construction, the facility shall be deemed to be a prudent
investment and the public utility may recover all just and reasonable costs of
planning and constructing or acquiring the facility.

7. All prudent and reasonable expenditures
made by a public utility to develop a plan filed pursuant to subsection 1,
including, without limitation, any environmental, engineering or other studies,
must be recovered from the rates charged to the public utility’s customers.

NRS 704.662Plan of water conservation: Requirement and procedure for
adoption; review by Commission; election to comply with plan adopted by
Commission.

1. Except as otherwise provided in
subsection 5, each public utility which furnishes, for compensation, any water
for municipal, industrial or domestic purposes shall adopt a plan of water
conservation based on the climate and the living conditions in its service area
in accordance with the provisions of NRS 704.6622.
The provisions of the plan must only apply to the public utility’s property and
its customers.

2. As part of the procedure of adopting a
plan, the public utility shall provide an opportunity for any interested party,
including, but not limited to, any private or public entity that supplies water
for municipal, industrial or domestic purposes, to submit written views and
recommendations on the plan.

3. Except as otherwise provided in
subsection 6, the plan:

(a) Must be available for inspection by members
of the public during office hours at the office of the public utility; and

(b) May be revised from time to time to reflect
the changing needs and conditions of the service area. Each such revision must
be filed with the Commission and made available for inspection by members of
the public within 30 days after its adoption.

4. The plan must be approved by the
Commission before it is put into effect.

5. In lieu of adopting a plan pursuant to
subsection 1, a public utility which is subject to the provisions of NRS 704.095 may elect to comply with a plan of water
conservation adopted by the Commission for this purpose.

6. If the public utility is required by
order of the Commission to file a management plan for water resources, the
public utility may adopt and file the plan of water conservation with the
Commission at the same time it is required to file the management plan for
water resources.

NRS 704.6624Plan to provide incentives for water conservation: Procedure for
adoption; revision; review and approval by Commission.

1. Each public utility which furnishes,
for compensation, any water for municipal, industrial or domestic purposes
shall adopt a plan to provide incentives:

(a) To encourage water conservation in its
service area;

(b) To retrofit existing structures with plumbing
fixtures designed to conserve the use of water; and

(c) For the installation of landscaping that uses
a minimal amount of water.

2. As part of the procedure of adopting a
plan, the public utility shall provide an opportunity for any interested person
to submit written views and recommendations on the plan.

3. The plan:

(a) Must be available for inspection by members
of the public during office hours at the office of the public utility; and

(b) May be revised from time to time to reflect
the changing needs and conditions of the service area. Each such revision must
be filed with the Commission and made available for inspection by members of
the public within 30 days after its adoption.

4. The Commission shall review the plan
for compliance with this section within 30 days after its submission. The plan
must be approved by the Commission before it is put into effect.

NRS 704.663Certain public utilities furnishing water or sewage service:
Regulations by Commission to consider certain requests by utility to recover
costs or impose surcharge.The
Commission shall adopt regulations specifying the information the Commission
will consider:

1. In reviewing a request included in an
application to make changes in any schedule submitted pursuant to NRS 704.110 by a public utility which furnishes, for
compensation, any water for municipal, industrial or domestic purposes, or
services for the disposal of sewage, or both, to recover an amount based on the
anticipated effects of implementing a plan of water conservation, including,
without limitation, the anticipated effects of decreased consumption of water
by customers of the public utility as the result of the implementation of a
plan for water conservation or the charging of rates to encourage water
conservation;

2. In reviewing a request included in an
application to make changes in any schedule submitted pursuant to NRS 704.110 by a public utility which furnishes, for
compensation, any water for municipal, industrial or domestic purposes, or
services for the disposal of sewage, or both, to recover the costs of providing
service without regard to the difference in the quantity of water actually sold
by the public utility by taking into account the adjusted and annualized
quantity of water sold during a test year and the growth in the number of
customers of the public utility; and

3. In reviewing a request included in a
plan or amendment to a plan submitted pursuant to NRS
704.661 by a public utility which furnishes, for compensation, any water
for municipal, industrial or domestic purposes, or services for the disposal of
sewage, or both, and which had an annual gross operating revenue of $1,000,000
or more for at least 1 year during the immediately preceding 3 years or, if the
public utility is authorized to follow the simplified procedures or
methodologies for a change of rates pursuant to NRS
704.095, made in such other form as prescribed by the Commission, to impose
a surcharge for the purpose of funding and encouraging investment in
infrastructure in the period between the filing of rate cases by the public
utility. The imposition of any such surcharge approved by the Commission is not
subject to the provisions of NRS 704.110.

NRS 704.664Facility for treatment of water acquired and constructed by
county: Approval of Commission required for imposition of tax to finance
facility if water taxed is supplied by public utility; determination by
Commission.

1. A county shall not impose the tax
authorized by NRS 244.3661 on the use
of water by customers of a supplier of water that is a public utility, or make
changes to the ordinance imposing such a tax, without the prior approval of the
Commission.

2. The Commission shall review an
application made by a county for the approval required by subsection 1 in the
same manner and to the same extent as it would review an application by a
public utility for increased rates based upon construction by the public
utility of the same facility.

3. The Commission shall not approve the
imposition of the tax or changes to the ordinance imposing the tax authorized
by NRS 244.3661 unless, after an investigation
and a hearing, it determines:

(a) The basis for the need of the facility;

(b) The nature of the probable effect on the
environment;

(c) That the facility represents the minimum
adverse effect on the environment, considering the state of available
technology and the nature and economics of the various alternatives and other
pertinent considerations;

(d) That the location of the facility as proposed
conforms to applicable state and local laws and any regulations issued pursuant
thereto;

(e) That the facility will serve the public
interest;

(f) That the tax which the county proposes to
impose is just and reasonable and consistent with the policies of the
Commission applicable to rates and rate design for public utilities;

(g) That the aggregate amount generated by the
tax will be sufficient to provide for the payment of the obligations issued by
the county to acquire and construct the new facility;

(h) That the water treatment services of the new
facility will be available for use by the public utility for as long as the
public utility holds a certificate of public convenience and necessity to
provide service as a water utility within the boundaries of the county on terms
and conditions which are reasonable and just to the utility and its customers;

(i) That the construction of the facility is
consistent with a resource plan approved by the Commission and the facility can
be integrated into existing water systems;

(j) That the financing of the facility pursuant
to this section is economically more advantageous to the customers of the
public utility who will pay the tax than any alternative means of financing a
new facility by the public utility; and

(k) That the construction of the facility and the
imposition of the tax is otherwise in the public interest.

4. The Commission shall adopt such
regulations as are necessary to carry out the provisions of this section.

NRS 704.6642Facility for treatment of water acquired and constructed by
county: Billing and collection of tax imposed on customers of public utility.

1. A county shall not require a public
utility whose customers pay a tax imposed pursuant to NRS 244.3661 to bill and collect the tax
except pursuant to an agreement entered into pursuant to subsection 2. At the
request of a county, a public utility shall provide such information as is
reasonably necessary for the county to bill for and collect any tax imposed
upon the customers of the public utility pursuant to NRS 244.3661.

2. A public utility whose customers pay a
tax imposed pursuant to NRS 244.3661
may enter into an agreement with the county with respect to billing for and
collecting the tax. The agreement may provide for collection remedies which may
include the collection remedies available to the public utility.

NRS 704.6644Facility for treatment of water acquired and constructed by
county: Public utility’s use of water treatment services provided by facility
authorized; Commission’s approval of agreement for use required.

1. A public utility must not be required
to use the water treatment services provided by a facility acquired and
constructed or to be acquired and constructed by the county pursuant to NRS 244.3661 without the consent of the
public utility and the Commission.

2. A public utility that supplies water
within the boundaries of a county may enter into an agreement with that county
to use the water treatment services provided by a facility acquired and
constructed or to be acquired and constructed by the county pursuant to NRS 244.3661. The term of the agreement
may be for more than 1 fiscal year. Any such agreement must be approved by the
Commission before it becomes effective.

3. The Commission shall not approve an
agreement executed pursuant to this section unless it determines that:

(a) The agreement provides that the water
treatment services of the facility will be available for use by the public
utility for as long as the public utility holds a certificate of public
convenience and necessity to provide service as a water utility within the
boundaries of the county;

(b) The basis for payment of the expenses of
operating and maintaining the facility provided in the agreement is reasonable
and just; and

NRS 704.6646Facility for treatment of water acquired and constructed by
county: Operation and maintenance of facility by public utility authorized;
Commission’s approval of agreement for operation and maintenance required.

1. A public utility may enter into an
agreement with a county to operate and maintain a facility acquired and
constructed or to be acquired and constructed by a county pursuant to NRS 244.3661. The term of the agreement
may be for more than 1 fiscal year. Any such agreement must be approved by the
Commission before it becomes effective.

2. The Commission shall not approve an
agreement executed pursuant to this section unless it determines that:

(a) The payments to be made under the agreement
to the utility for operation and maintenance of the facility are reasonable and
just; and

NRS 704.665Water to be provided through single connection to building
containing multiple units for occupancy; exception.Unless
the owner of the water system within a building containing multiple occupancy
units otherwise requests in writing, a public utility shall provide water to
the building through a single connection, in which case the utility may
require, where water meters are otherwise permitted by law, that there be a
single water meter or meter facility, but it shall not require a separate meter
facility for each unit therein.

(Added to NRS by 1979, 1391)

NRS 704.667Public utility not required to furnish water for artificial lake
or stream if prohibited or restricted by ordinance in certain counties;
exceptions.In any county whose
population is 700,000 or more:

1. Except as otherwise provided in
subsection 2, nothing in this chapter requires a public utility to furnish
water for the purpose of filling or maintaining an artificial lake or stream
where that use of water is prohibited or restricted by ordinance of:

(a) The county, if the artificial lake or stream
is located within the unincorporated areas of the county; or

(b) A city, if the artificial lake or stream is
located within the boundaries of the city.

2. The provisions of subsection 1 and of
any ordinance referred to in subsection 1 do not apply to:

(a) Water stored in an artificial reservoir for
use in flood control, in meeting peak water demands or for purposes relating to
the treatment of sewage;

(b) Water used in a mining reclamation project;
or

(c) A body of water located in a recreational
facility that is open to the public and owned or operated by the United States
or the State of Nevada.

NRS 704.6672Review of water supply and sewage service for certain proposed
subdivisions: Duties of Commission; fee; exceptions.

1. The Commission shall review each
tentative map for a subdivision received pursuant to NRS 278.335 and conduct an investigation,
if deemed necessary, to determine the continuity and adequacy of the water
supply or sewer service, or both, for the subdivision. If the Commission
approves the final map for the subdivision, the Commission shall, for the
purposes of NRS 278.377, submit written
verification of its approval to the Division of Public and Behavioral Health of
the Department of Health and Human Services and the Division of Water Resources
of the State Department of Conservation and Natural Resources.

2. The Commission shall collect a fee not
to exceed $200, which fee must be used to defray the cost of conducting any
investigation under the provisions of subsection 1.

3. The provisions of subsections 1 and 2
shall not apply in any case where:

(a) The person to furnish the water supply or
sewer service has already been granted a certificate of public convenience and
necessity by the Commission to serve the area set forth in the tentative map.

(b) Any county, municipality or other form of
local government, including, but not limited to, districts formed under the
provisions of chapter 318 of NRS, will
furnish the water supply or sewer service to the area set forth in the
tentative map.

NRS 704.6674Supplier of water or services for sewage: Regulation by county;
exceptions; appointment of receiver upon petition of county commissioners.

1. The board of county commissioners of
any county may regulate by ordinance any person furnishing a water supply or
sewer services, or water and sewer services, for compensation to persons within
that county except those persons regulated by the Commission, the services
furnished to its residents by a political subdivision, and services furnished
to its members by a nonprofit association in which the rights and interests of
all its members are equal.

2. Any person who is a customer of an
entity subject to regulation by the board of county commissioners as provided
in subsection 1 may request the board to review that entity, the service it is
providing and the manner in which it is providing the service to determine
whether a receiver should be appointed for that entity. If the board determines
it to be appropriate, it shall file a petition for the appointment of a
receiver for the entity in the same manner and with the same duties and powers
as a receiver appointed upon petition of the Commission for a public utility as
provided in NRS 704.6676.

(Added to NRS by 1971, 1209; A 1979, 202, 803)

NRS 704.6676Supplier of water or services for sewage: Appointment of
receiver upon petition of Commission.

1. If the Commission determines after
notice and hearing that a public utility which furnishes water or services for
the disposal of sewage, or both:

(a) Is unable to provide reasonably continuous
and adequate service; or

(b) Otherwise qualifies for appointment of a
receiver pursuant to NRS 32.010,

Ê the
Commission may file a petition for the appointment of a receiver for the public
utility in the district court for the county in which the principal office of
the utility is located within this state, or in the district court for Carson
City if the principal office of the utility is located outside this state, to
insure the public interest in receiving service from the public utility in the
manner required by law.

2. The district court in which the
petition is filed pursuant to subsection 1 shall immediately appoint a receiver
qualified to manage the type of public utility for which the petition was filed
if it finds the determination of the Commission to be correct.

3. Any person so appointed receiver is,
from the time of the person’s appointment until the termination of the person’s
duties pursuant to law, subject to all duties and has all powers generally
conferred upon a receiver by law, including the power to petition for relief in
bankruptcy and to sell or transfer the assets of the public utility for the
benefit of the public utility’s creditors.

Ê any or all
of its real property or goods, including fixtures, or any combination thereof
which are necessary in the present or future performance of its duties to the
public regarding water or sewage without first obtaining approval from the
Commission which authorizes the public utility to do so. This limitation
applies to any interest in real property, including, without limitation,
easements and water rights.

2. Any such action:

(a) Which is not taken in accordance with the
approval of the Commission; or

(b) Which is taken without obtaining the approval
from the Commission,

Ê is void.

3. If the public utility is disposing of
all of its real property and goods, the Commission shall hold a public hearing
on the matter before determining whether to approve the disposal.

4. The Commission shall adopt regulations
which set forth the types and quantities of property and goods that are
necessary in the performance of the duties of the various classes of public
utilities.

5. The provisions of this section are not
intended to limit the regulatory authority of the Commission granted in other
sections of this chapter.

6. The provisions of this section do not
apply to a public utility engaged in the business of furnishing, for
compensation, water or services for the disposal of sewage, or both, to persons
within this state if the utility:

1. Except as otherwise provided in
subsection 2, every corporation or other person who sells geothermal energy to
the public is affected with a public interest, is a public utility and is subject
to the jurisdiction and control of the Commission. The authority of the
Commission to regulate such persons is limited to the authority granted by this
section and NRS 704.033 and 704.035.

2. This section does not apply to any
corporation or other person described in subsection 4 of NRS
704.021 or to any political subdivision of the State authorized to sell
energy to the public.

3. The Commission shall adopt just and
reasonable regulations governing the sale of energy from geothermal resources
to the public. The regulations must provide for a system of operating permits
which:

(a) May not be denied because the area which the applicant
proposes to serve is already being served by a gas or electric utility.

(b) May not convey an exclusive right to supply
geothermal energy in the area which the applicant proposes to serve.

(c) Specify in each case the geographic area in
which the applicant reasonably can provide the services authorized in the
permit.

(d) Require the applicant to enter into a
contract with each customer served by the utility. The form and scope of the
contract must be subject to review and approval of the Commission. The contract
must specify at least:

(1) The period of time during which
service will be provided. The contract must provide for a period of at least 3
years unless such a provision is expressly waived by the customer.

(2) The rates or the formula for
determining rates to be charged during the term of the contract.

(3) That the utility will submit to
binding arbitration, pursuant to chapter 38
of NRS, matters relating to damages suffered by the customer as a result of a
disruption in service and that in any such arbitration, the utility is liable
for damages unless it establishes that the disruption was caused by
circumstances beyond its control, or another affirmative defense, or establishes
that it was not negligent.

4. Before issuing an operating permit the
Commission must find that:

(a) The applicant is fit, willing and able to
provide the services authorized in the permit.

(b) The applicant has tested the geothermal
reservoir to determine whether it appears to be capable of providing sufficient
energy to supply the intended uses.

(c) The system which the applicant intends to use
to produce and distribute the heat meets appropriate standards.

5. The Commission has continuing authority
to regulate the utilities described in this section to ensure that each utility
adheres to the conditions set forth in its operating permit and that the
utility provides adequate services.

COOPERATIVE ASSOCIATIONS, NONPROFIT CORPORATIONS AND
ASSOCIATIONS AND OTHER SIMILAR ENTITIES

NRS 704.673Cooperatives, nonprofit corporations and associations supplying
services both to public and members declared public utilities; regulation by
Commission.

1. Except as otherwise provided in
subsection 2, every cooperative association or nonprofit corporation or
association and every other supplier of services described in this chapter
supplying such services for the use of the public and for the use of its own
members is hereby declared to be affected with a public interest, to be a
public utility, and to be subject to the jurisdiction, control and regulation
of the Commission and to the provisions of this chapter.

2. In the case of the acquisition of the
certificate or all or any part of the territory of a public utility, as defined
in paragraph (a) of subsection 2 of NRS 704.020, by
a cooperative association or nonprofit corporation or association which before April
26, 1963, had supplied services for the use of its own members only, the
provisions of subsection 1 are not applicable for a period of 6 months or the
expiration of such reasonable extension or extensions of that 6-month period as
may be ordered by the Commission, during which period the cooperative
association or nonprofit corporation or association may enroll as its members
the customers of the public utility whose certificate or territory was acquired
so as to make such acquiring cooperative association or nonprofit corporation
or association subject only to the limited jurisdiction, control and regulation
of the Commission, and only to the specific provisions of chapter
704 of NRS as provided by NRS 704.675.

NRS 704.675Cooperatives, nonprofit corporations and associations supplying
services to members only declared public utilities; limited jurisdiction of
Commission.Every cooperative
association or nonprofit corporation or association and every other supplier of
services described in this chapter supplying those services for the use of its
own members only is hereby declared to be affected with a public interest, to
be a public utility, and to be subject to the jurisdiction, control and
regulation of the Commission for the purposes of NRS 703.191, 704.330,
704.350 to 704.410,
inclusive, but not to any other jurisdiction, control and regulation of the
Commission or to the provisions of any section not specifically mentioned in
this section.

NRS 704.677Certificates of public convenience and necessity to be issued to
certain cooperatives, nonprofit corporations and associations; contents of
statement and certificate.

1. Every cooperative association or
nonprofit corporation or association and every other supplier of services
described in this chapter which has, prior to April 26, 1963, supplied such
services for the use of the public or for the use of its own members, or has
constructed facilities to provide such services and has done so prior to March
15, 1963, is hereby entitled to receive a certificate of public convenience and
necessity from the Commission to cover such facilities and such area as it
served prior to April 26, 1963.

2. Every cooperative association or
nonprofit corporation or association and every other supplier of services
described in this chapter which has, prior to April 26, 1963, supplied such
services and is thereby entitled to a certificate of public convenience and
necessity for such facilities and area served shall file with the Commission a
statement setting forth:

(a) The name or names of the cooperative
association or nonprofit corporation or association, as the case may be, by
whom the facilities have been operated.

(b) A physical description of all of the plan and
facilities used by such association in rendering such service.

(c) A general description of the area or
territory served.

(d) Such other information as the Commission may
reasonably prescribe.

3. The Commission shall, within 60 days
after receiving such statement, issue a certificate of public convenience and
necessity to the cooperative association or nonprofit corporation or
association. The certificate of public convenience and necessity shall contain
a description of the territory which has been served by such cooperative
association or nonprofit corporation or association prior to April 26, 1963,
and such territory shall be considered the service area within which the
cooperative association or nonprofit corporation or association may conduct its
business within the State of Nevada.

1. Except as otherwise provided in this
section, the Commission shall not regulate any broadband service, including
imposing any requirements relating to the terms, conditions, rates or
availability of broadband service.

2. The provisions of subsection 1 do not
limit or modify the authority of the Commission to:

(a) Consider any revenues, costs and expenses
that a small-scale provider of last resort derives from providing a broadband
service, if the Commission is determining the rates of the provider under a
general rate application that is filed pursuant to subsection 3 of NRS 704.110;

(b) Act on a complaint filed pursuant to NRS 703.310, if the complaint relates to a
broadband service that is provided by a public utility;

(c) Include any appropriate gross operating
revenue that a public utility derives from providing broadband service when the
Commission calculates the gross operating revenue of the public utility for the
purposes of levying and collecting the annual assessment in accordance with the
provisions of NRS 704.033; or

(d) Determine the rates, pricing, terms and
conditions of intrastate switched or special access services provided by a
telecommunication provider.

3. The provisions of subsection 1 do not:

(a) Apply to the Commission in connection with
any actions or decisions required or permitted by the Telecommunications Act of
1996, Public Law 104-104, 110 Stat. 56-161;

(b) Prevent the Commission from exercising its
authority pursuant to 47 U.S.C. § 214(e) or § 254(f) relating to the
implementation of the federal universal service program, including, without
limitation, taking any action within the scope of that authority because of a
regulation or order of the Federal Communications Commission; or

(c) Limit or modify:

(1) The duties of a telecommunication
provider regarding the provision of network interconnection, unbundled network
elements and resold services under the provisions of the Telecommunications Act
of 1996, Public Law 104-104, 110 Stat. 56-161; or

INTERNET PROTOCOL-ENABLED SERVICE AND VOICE OVER INTERNET
PROTOCOL SERVICE

NRS 704.685Limitations on regulation of Internet Protocol-enabled service
or Voice over Internet Protocol service; exceptions.

1. Except as otherwise provided in
subsection 2, a state agency or political subdivision of the State may not,
directly or indirectly, regulate the rates charged for, service or contract
terms for, conditions for, or requirements for entry for Internet Protocol-enabled
service or Voice over Internet Protocol service.

2. The provisions of subsection 1 must not
be construed to:

(a) Affect or limit the enforcement of criminal
or civil laws, including, without limitation, laws concerning consumer protection
and unfair or deceptive trade practices, that apply generally to the conduct of
business;

(b) Affect, mandate or prohibit:

(1) The assessment of taxes, fees or
surcharges which are of general applicability or which are otherwise authorized
by statute; or

(2) The levy and collection of the
assessment required by NRS 704.033 from a provider
of Voice over Internet Protocol service that has a certificate of public
convenience and necessity; or

(c) Affect or modify:

(1) Any right or obligation of any
telecommunication provider, or the authority granted to the Commission pursuant
to 47 U.S.C. §§ 251 and 252, including, without limitation, any authority
granted to the Commission to address or affect the resolution of disputes
regarding reciprocal compensation and interconnection;

(2) Any obligation relating to the
provision of video service by any person pursuant to chapter 711 of NRS;

(3) Any applicable wholesale tariff; or

(4) Any authority granted to the
Commission pursuant to 47 U.S.C. §§ 214(e) and 254(f).

3. As used in this section:

(a) “Internet Protocol-enabled service” means any
service, functionality or application which uses Internet Protocol or a
successor protocol that enables an end-user to send or receive voice, data or
video communications. The term does not include Voice over Internet Protocol
service.

(b) “Voice over Internet Protocol service” means
any service that:

(1) Enables real-time, two-way voice
communication originating from or terminating at the user’s location in
Internet Protocol or a successor protocol;

(2) Uses a broadband connection from the
user’s location; and

(3) Permits a user to receive a call that
originates on the public switched telephone network and to terminate a call to
the public switched telephone network.

NRS 704.687Limitations on exclusion of televised broadcasts of sporting or
other special events.

1. Except as provided in subsections 2 and
3, a televised broadcast of a sporting event or other special event originating
within this state must not be excluded from viewing at the time it takes place
by persons in the area of the event if all tickets available for sale are sold
24 hours or more before the event.

2. Except as provided in subsection 3, a
televised broadcast of an athletic event governed by the National Collegiate
Athletic Association or the Association of Intercollegiate Athletics for Women
must not be excluded from viewing at the time it takes place by persons in the
area of the event if all tickets available for sale are sold 48 hours or more
before the event.

3. This section does not apply to sporting
events or other special events which are televised for viewing on a closed
circuit only.

Ê to establish
discounts in the rates for the telecommunication services that the provider
furnishes to that school or library. The amount of the discount must be
determined by the Commission in a manner that is consistent with the provisions
of 47 U.S.C. § 254.

(a) Public or private nonprofit providers of
health care which serve persons in rural areas; or

(b) Persons with low income and persons in rural,
insular and high-cost areas,

Ê to ensure
that such providers of health care and persons have access to telecommunication
services that are reasonably comparable to those services available in urban
areas and that the rates for such services charged by the telecommunication
provider are reasonably comparable to those charged in the urban areas, to the
extent required by the provisions of 47 U.S.C. § 254.

3. The Commission shall adopt regulations
which set forth the requirements for eligibility for:

(a) Persons with low income to receive a
reduction in rates for telephone service pursuant to NRS 707.400 to 707.500, inclusive. The regulations
adopted pursuant to this paragraph must provide that:

(1) An eligible provider shall provide a
reduction in rates for telephone service if the income of a person’s household
is at or below the greater of:

(I) The percentage of the federally
designated level signifying poverty for a household of that size specified by
47 C.F.R. § 54.409, as that section existed on June 28, 2012; or

(II) The percentage of the federally
designated level signifying poverty for a household of that size specified by
the Commission; and

(2) The percentage of the federally
designated level signifying poverty specified pursuant to subparagraph (1) is
applicable to all eligible providers.

(b) Small-scale
providers of last resort to apply to receive payments from the fund to maintain
the availability of telephone service with regard to rural,
insular and high-cost areas.

(c) Competitive suppliers that are providers of
last resort to apply to receive payments from the fund to maintain the
availability of telephone service with regard to rural, insular and high-cost
areas.

4. Any regulations adopted pursuant to
this section and NRS 704.040 regarding the
availability of telephone service must:

(a) Be consistent with the applicable provisions
of 47 U.S.C. §§ 214 and 254;

(b) Define rural, insular and high-cost areas;

(c) Establish nondiscriminatory eligibility
requirements for all small-scale providers of last resort that apply to receive
payments from the fund to maintain the availability of telephone service with
regard to rural, insular and high-cost areas; and

(d) Allow competitive suppliers which are
providers of last resort and which meet the eligibility requirements
established by the Commission to apply to receive payments from the fund to
maintain the availability of telephone service with regard to rural, insular
and high-cost areas.

5. As used in this section:

(a) “Eligible provider” has the meaning ascribed
to it in NRS 707.440.

(b) “Household” has the meaning ascribed to it in
47 C.F.R. § 54.400(h), as that section existed on April 2, 2012.

(c) “Income” has the meaning ascribed to it in 47
C.F.R. § 54.400(f), as that section existed on April 2, 2012.

NRS 704.6875Customer entitled to written notice of duration of certain
calls.

1. Except as otherwise provided in
subsection 2, each telecommunication provider shall provide timely written
notice to a customer of the duration of each call that is billed to the
customer, reported in minutes, seconds or any fraction thereof, if the charges
for the telecommunication services are calculated, in whole or in part, on the
basis of the duration of the call.

2. The provisions of this section do not
apply to measured rate service.

1. The Commission shall by regulation
establish a procedure for an incumbent local exchange carrier to provide notice
via the Internet of interconnection agreements entered into with another
telecommunication provider.

2. The procedure established by the
Commission pursuant to this section for providing notice via the Internet is
the exclusive method for providing such notice, and the Commission may not
require another method of notice.

NRS 704.6878Adoption of regulations regarding incumbent local exchange
carriers and the obligations of providers of last resort.The Commission shall adopt regulations that
establish the obligations of incumbent local exchange carriers as providers of
last resort giving due consideration to the status of the incumbent local
exchange carriers as either competitive suppliers or small-scale providers of
last resort.

NRS 704.6881Establishment of standards and penalties to encourage
competition and discourage discrimination in provision of local
telecommunication services.The
Commission shall, by regulation:

1. Establish standards of performance and
reporting regarding the provision of interconnection, unbundled network
elements and resold services, which encourage competition and discourage
discriminatory conduct in the provision of local telecommunication services;
and

2. Notwithstanding the provisions of NRS 703.320 to the contrary, establish
penalties and expedited procedures for imposing penalties upon a
telecommunication provider for actions that are inconsistent with the standards
established by the Commission pursuant to subsection 1. Such penalties may
include financial payment to the complaining telecommunication provider for a
violation of the standards established by the Commission pursuant to subsection
1, provided that any penalty paid must be deducted, with interest, from any
other award under any other judicial or administrative procedure for the same
conduct in the same reporting period. Any penalty imposed pursuant to this
subsection is in lieu of the administrative fine set forth in NRS 703.380 and must be:

(a) Imposed for violating a standard or standards
established by regulations of the Commission pursuant to subsection 1;

(b) Determined by the Commission to further the
goal of encouraging competition or discouraging discriminatory conduct; and

(c) In an amount reasonable to encourage
competition or discourage discriminatory conduct.

NRS 704.6882Establishment of expedited procedures for certain complaints
filed by provider against another provider.Notwithstanding
the provisions of NRS 703.310 and 703.320, the Commission shall establish by
regulation expedited procedures for complaints filed by a telecommunication
provider against another telecommunication provider for any dispute arising
under this chapter, including, without limitation, a dispute arising under the
standards set forth in NRS 704.68887, or arising
under chapter 703 of NRS. The regulations may
include, without limitation, specific procedures for interim relief that may
include a preliminary decision by a single Commissioner except as to the
imposition of monetary penalties.

NRS 704.6883Judicial review of certain decisions of Commission.Any judicial review of a decision by the
Commission pursuant to NRS 704.6881 and 704.6882 must be made in accordance with NRS 703.373 to 703.376, inclusive.

(Added to NRS by 1999, 1319)—(Substituted
in revision for NRS 704.283)

NRS 704.6884Providers required to comply with state and federal consumer and
antitrust protections; providers subject to laws governing unfair trade
practices for violations of standards established by Commission.The provisions of NRS
704.6881 to 704.6884, inclusive, must not be
construed to exempt telecommunication providers from any other applicable
statute of this State or the United States relating to consumer and antitrust
protections. The exemption provided in paragraph (c) of subsection 3 of NRS 598A.040 does not apply to conduct
of, or actions taken by, a telecommunication provider in violation of the
standards established pursuant to subsection 1 of NRS
704.6881.

1. Except as otherwise provided in this
section, any telecommunication provider operating within this State is a
competitive supplier that is subject to the provisions of NRS 704.68861 to 704.68887,
inclusive.

2. A small-scale provider of last resort
is not a competitive supplier that is subject to the provisions of NRS 704.68861 to 704.68887,
inclusive, unless the small-scale provider of last resort is authorized by the
Commission pursuant to NRS 704.68869 to be
regulated as a competitive supplier.

NRS 704.68863Powers and duties under certain federal and state laws preserved.The provisions of NRS
704.68861 to 704.68887, inclusive, do not:

1. Apply to the Commission in connection
with any actions or decisions required or permitted by the Telecommunications
Act of 1996, Public Law 104-104, 110 Stat. 56-161; or

2. Limit or modify:

(a) The duties of a competitive supplier that is
an incumbent local exchange carrier regarding the provision of network
interconnection, unbundled network elements and resold services under the
provisions of the Telecommunications Act of 1996, Public Law 104-104, 110 Stat.
56-161; or

1. Each competitive supplier that is an
incumbent local exchange carrier on May 31, 2007, shall:

(a) On or before October 1, 2008, prepare and
submit to the Commission and the Bureau of Consumer Protection in the Office of
the Attorney General a report regarding competition in the local markets for
telecommunication service, including, without limitation, competition from
available alternative services that serve as technological substitutes for
telecommunication service. The report must be based on information that is
reasonably available from public sources and must contain data, statistical
measures and analyses for assessing:

(1) The existing number of customers of
the competitive supplier, the forms of telecommunication service provided by
the competitive supplier and the prices for such services;

(2) The number of competitors in the local
markets within the service territory of the competitive supplier for various
forms of telecommunication service, including, without limitation, wireline and
wireless telecommunication service, and any available alternative services that
serve as technological substitutes for telecommunication service, such as
broadband services, and a comparison of the services provided by such
competitors and prices for telecommunication service and broadband service;

(3) The growth or decline, if any, in
customers and primary access lines of the competitive supplier during the
preceding 5 years; and

(4) The number of persons receiving a
reduction in rates for telephone service pursuant to NRS 707.400 to 707.500, inclusive, within the service
territory of the competitive supplier, the price of such service, the consumer
outreach and informational programs used to expand participation of eligible
persons in such service, and the management, coordination and training programs
implemented by the competitive supplier to increase awareness and use of
lifeline and tribal link up programs.

(b) On or before October 1 of each year
thereafter for a period of 4 years, prepare and submit to the Commission and
the Bureau of Consumer Protection in the Office of the Attorney General a
report that compares and evaluates any changes in the data, prices, statistical
measures and analyses set forth in the report submitted by the competitive
supplier pursuant to paragraph (a).

2. The Commission shall:

(a) On or before December 1 of each applicable
year, provide to the Legislative Commission a copy of the reports received
pursuant to subsection 1; and

(b) On or before December 1, 2010, prepare and
submit to the Legislative Commission and the Bureau of Consumer Protection in
the Office of the Attorney General a report that:

(1) Summarizes and evaluates the data,
prices, statistical measures and analyses set forth in the reports submitted by
competitive suppliers pursuant to subsection 1;

(2) Provides an assessment of market
conditions and the state of competition for telecommunication service in the various
geographical areas of this State; and

(3) Includes, without limitation:

(I) A discussion of the types of
alternative services that serve as technological substitutes for
telecommunication service and the availability of such alternative services in
the various geographical areas of this State; and

(II) An assessment of the
alternative services that are available for basic network service and business
line service considering intermodal alternatives, technological developments,
market conditions and the availability of comparable alternative services in
the various geographical areas of this State.

1. A small-scale provider of last resort
may apply to the Commission to be regulated as a competitive supplier pursuant
to NRS 704.68861 to 704.68887,
inclusive.

2. The Commission may grant the
application if it finds that the public interest will be served by allowing the
small-scale provider of last resort to be regulated as a competitive supplier.

3. If the Commission denies the
application, the small-scale provider of last resort:

(a) May not be regulated as a competitive
supplier but remains subject to regulation pursuant to this chapter as a
telecommunication provider; and

(b) May not submit another application to be
regulated as a competitive supplier sooner than 1 year after the date the most
recent application was denied, unless the Commission, upon a showing of good
cause or changed circumstances, allows the provider to submit another application
sooner.

1. A competitive supplier is not subject
to any review of earnings or monitoring of the rate base or any other
regulation by the Commission relating to the net income or rate of return of
the competitive supplier, and the Commission shall not consider the rate of
return, the rate base or any other earnings of the competitive supplier in
carrying out the provisions of NRS 704.68861 to 704.68887, inclusive.

2. On or before May 15 of each year, a
competitive supplier shall file with the Commission an annual statement of
income, a balance sheet, a statement of cash flows for the total operations of
the competitive supplier and a statement of intrastate service revenues, each
prepared in accordance with generally accepted accounting principles.

3. A competitive supplier is not required
to submit any other form of financial report or comply with any other
accounting requirements, including, without limitation, requirements relating
to depreciation and affiliate transactions, imposed upon a public utility by
this chapter, chapter 703 of NRS or the
regulations of the Commission.

(a) Is exempt from the provisions of NRS 704.100 and 704.110
and the regulations of the Commission relating thereto and from any other
provision of this chapter governing the rates, pricing, terms and conditions of
any telecommunication service; and

(b) May exercise complete flexibility in the
rates, pricing, terms and conditions of any telecommunication service.

2. The rates, pricing, terms and
conditions of intrastate switched or special access service provided by a
competitive supplier that is an incumbent local exchange carrier and the
applicability of such access service to intrastate interexchange traffic are
subject to regulation by the Commission, which must be consistent with federal
law, unless the Commission deregulates intrastate switched or special access
service pursuant to NRS 704.68879.

3. A competitive supplier that is an
incumbent local exchange carrier shall use a letter of advice to change any
rates, pricing, terms and conditions of intrastate switched or special access
service, universal lifeline service or access to emergency 911 service. A
letter of advice submitted pursuant to this subsection shall be deemed approved
if the Commission does not otherwise act on the letter of advice within 120
days after the date on which the letter is filed with the Commission.

(1) Posting such rates, pricing, terms and
conditions electronically on a publicly available Internet website maintained
by the competitive supplier;

(2) Maintaining for inspection by the
public a copy of such rates, pricing, terms and conditions at the principal
office in Nevada of the competitive supplier; or

(3) Delivering to the customer a copy of
the rates, pricing, terms and conditions in writing with the first invoice,
billing statement or other written summary of charges for the telecommunication
service provided by the competitive supplier to the customer; and

(b) May publish the rates, pricing, terms and
conditions of other telecommunication service by:

(1) Posting such rates, pricing, terms and
conditions electronically on a publicly available Internet website maintained by
the competitive supplier;

(2) Maintaining for inspection by the
public a copy of such rates, pricing, terms and conditions at the principal
office in Nevada of the competitive supplier; or

(3) Delivering to the customer a copy of
the rates, pricing, terms and conditions in writing with the first invoice,
billing statement or other written summary of charges for the telecommunication
service provided by the competitive supplier to the customer.

1. The Commission shall not decrease the
rates or pricing of basic network service provided by a competitive supplier,
unless the competitive supplier files a general rate application pursuant to
paragraph (b) of subsection 2 and the Commission orders a decrease in the rates
or pricing of such service in a general rate case proceeding conducted pursuant
thereto.

2. Except as otherwise provided in this
section, a competitive supplier that is an incumbent local exchange carrier
shall not:

(a) Without the approval of the Commission,
discontinue basic network service or change the terms and conditions of basic
network service as set forth in the tariffs of the competitive supplier that
were in effect on January 1, 2007.

(b) Before January 1, 2012, increase the rates or
pricing of basic network service as set forth in the tariffs of the competitive
supplier that were in effect on January 1, 2007, except that notwithstanding
any other provision of this chapter:

(1) On or after January 1, 2011, and
before January 1, 2012, the competitive supplier may, without the approval of
the Commission, increase the rates or pricing of basic network service provided
by the competitive supplier but the total of all increases during that period
may not result in rates or pricing of basic network service that is more than
$1 above the rates or pricing set forth in the tariffs of the competitive
supplier that were in effect on January 1, 2007; and

(2) The Commission may allow the
competitive supplier to increase the rates or pricing of basic network service
above the amounts authorized by this subsection only if the competitive
supplier files a general rate application and proves in a general rate case
proceeding conducted pursuant to NRS 704.110 and 704.120 that the increase is absolutely necessary to
avoid rates or prices that are confiscatory under the Constitution of the
United States or the Constitution of this State. In such a general rate case
proceeding, the Commission:

(I) May allow an increase in the
rates or pricing of basic network service provided by the competitive supplier
only in an amount that the competitive supplier proves in the general rate case
proceeding is absolutely necessary to avoid an unconstitutional result and
shall not authorize in the general rate case proceeding any rate, price or
other relief for the competitive supplier that is not proven by the competitive
supplier to be absolutely necessary to avoid an unconstitutional result; and

(II) May order a decrease in the
rates or pricing of basic network service provided by the competitive supplier
if the Commission determines in the general rate case proceeding that the
decrease is necessary to provide customers with just and reasonable rates.

3. On or after January 1, 2012:

(a) A competitive supplier that is an incumbent
local exchange carrier may exercise flexibility in the rates, pricing, terms
and conditions of basic network service in the same manner permitted for other
telecommunication service pursuant to NRS 704.68873;
and

(b) The Commission shall not:

(1) Regulate the rates, pricing, terms and
conditions of basic network service provided by such a competitive supplier; or

(2) Require such a competitive supplier to
maintain any schedule or tariff for basic network service.

4. For any area in which a competitive
supplier is a provider of last resort, the competitive supplier must provide
reasonably detailed information concerning the rates, pricing, terms and
conditions of basic network service in the manner required by NRS 704.68875.

1. A competitive supplier shall provide
access to emergency 911 service and shall not discontinue such access.

2. The Commission may, upon its own motion
or the petition of any person, deregulate intrastate switched or special access
service provided by a competitive supplier. Unless the Commission deregulates
such access service pursuant to this subsection, the rates, pricing, terms and
conditions of such access service are subject to tariff regulation by the
Commission.

3. If the Commission receives a petition
pursuant to subsection 2, the Commission shall act upon the petition not later
than 120 days after the date the Commission receives the petition.

NRS 704.68881Authority of provider of last resort to satisfy obligations
through alternative voice service; conditions and limitations.

1. For any area in which a competitive
supplier is a provider of last resort, the competitive supplier may satisfy its
obligation as a provider of last resort through an alternative voice service.

2. The Commission may not exercise
jurisdiction over an alternative voice service used by a competitive supplier
or its affiliate to satisfy the competitive supplier’s obligation as a provider
of last resort, including, without limitation, determining the rates, pricing,
terms, conditions or availability of an alternative voice service.

3. The use of an alternative voice service
provided by a competitive supplier or an affiliate of the competitive supplier
to satisfy the competitive supplier’s obligation as a provider of last resort
does not affect any obligation of the competitive supplier:

NRS 704.68883Permitted billing practices for certain service.If a competitive supplier charges a customer a
fixed price or amount for a package of services, the competitive supplier, in
any bill or statement for the package of services, is permitted to specify only
the fixed price or amount for the package of services and is not required to:

1. Identify each separate service or
component included in the package of services; or

2. Specify the unit price or amount
charged for each separate service or component included in the package of
services.

1. A competitive supplier that is not a
provider of last resort may discontinue any telecommunication service by
providing written notice, not less than 10 days before the date of the
discontinuation, to any customer of that service and the Commission.

2. A competitive supplier that is a
provider of last resort may:

(a) Discontinue any telecommunication service,
except basic network service, by providing written notice, not less than 10
days before the date of the discontinuation, to any customer of that service
and the Commission.

(b) Apply to the Commission to discontinue basic
network service to all or a portion of the service territory of the competitive
supplier on terms that are in the public interest.

NRS 704.68886Relief from obligations and status as provider of last resort;
requirements; filing application; power of Commission to declare emergency in
area where alternative voice service is unavailable.

1. A competitive supplier that is a
provider of last resort may file an application with the Commission to be
relieved, in whole or in part, of its obligations and status as a provider of
last resort in an area where alternative voice service is provided by:

(a) At least:

(1) One provider that utilizes a wireline
technology, is not an affiliate of the provider of last resort and is capable
of providing alternative voice service to the entire area for which relief is
sought; and

(2) One provider that utilizes any other
technology and is capable of providing alternative voice service to the entire
area for which relief is sought;

(b) On or after June 1, 2015, two or more
providers that utilize a wireless technology and that are capable of providing
alternative voice service to the entire area for which relief is sought; or

(c) On or after June 1, 2015, three or more
providers that utilize any technology and that are capable of providing
alternative voice service to the entire area for which relief is sought.

2. An application filed pursuant to subsection
1 must include:

(a) A map of the entire area for which relief is
sought that identifies separately each provider of alternative voice service
which is intended to satisfy the requirements of subsection 1. The map must be
of sufficient detail to identify the exact boundary by street of the entire
area for which relief is sought.

(b) A draft of the notice which the applicant
intends to provide pursuant to subsection 4.

3. The Commission shall approve or deny an
application filed pursuant to subsection 1 not later than 180 days after the
application is filed with the Commission. The Commission shall not approve an
application unless the Commission determines that the applicant has satisfied
the requirements of this section. The Commission may hold a hearing to
determine whether sufficient alternative voice service exists in an area for
which relief is sought by an applicant.

4. An applicant shall, not later than 30
days after filing an application pursuant to subsection 1, provide written
notice:

(a) To each current customer of the applicant
located within the area for which relief is sought. The notice may be included
in a bill from the applicant to the customer or included in a special mailing,
other than a promotional mailing, which states that important information is
enclosed. If a customer has elected to receive his or her bill in an electronic
form, such notice must be provided to the customer electronically in the same
manner in which he or she receives a bill from the applicant.

(b) To each public safety answering point which
is located within the area for which relief is sought.

5. The written notice provided to each
customer pursuant to paragraph (a) of subsection 4 must include, in clear and
comprehensive language that is understandable to an ordinary layperson:

(a) A statement that the applicant has applied to
the Commission for relief of its obligations as a provider of last resort in
the area in which the customer resides.

(b) A statement that a consumer session will be
conducted by the Commission in accordance with subsection 7 at which the
customer may make inquiries or comments concerning the application.

(c) A statement that the Commission will issue a
public notice identifying the time, date and location of the consumer session.

(d) Any additional information required by the
Commission.

6. A competitive supplier who files an
application for relief pursuant to subsection 1 shall conduct at least one
meeting concerning the application, which must include the following parties:

(a) The Commission;

(b) The Consumer’s Advocate;

(c) Representatives from each public safety
answering point that is located within the area for which relief is sought; and

(d) Each local law enforcement agency whose
jurisdiction includes, in whole or in part, the area for which relief is
sought.

7. Not later than 120 days after receiving
an application filed pursuant to subsection 1, the Commission shall, in
collaboration with the applicant, schedule and conduct at least one consumer
session in each county in which is located, in whole or in part, any area for
which relief is sought under the application. The Commission shall provide
notice of the consumer session in accordance with regulations adopted pursuant
to NRS 703.320.

8. A competitive supplier that is relieved
of its obligation and status as a provider of last resort pursuant to this
section shall not apply for, and is not entitled to receive, any money from the
fund to maintain the availability of telephone service for any area for which
relief has been granted pursuant to this section, except for money for the
provision of lifeline service, as the term is defined in NRS 707.450.

9. If the Commission issues an order
approving an application for relief pursuant to this section, the relief
granted by such approval does not affect or modify any obligation of an
incumbent local exchange carrier pursuant to any applicable federal law or
regulation.

10. A competitive supplier that is an
incumbent local exchange carrier and receives, on or before June 2, 2013, full
or partial relief from its obligations as a provider of last resort pursuant to
NRS 704.6878 shall be deemed to be fully released
from any obligation as a provider of last resort for the area for which relief
was granted on or before June 2, 2013.

11. Except as otherwise provided in this
section, any relief granted pursuant to this section does not impose any
obligation upon a provider of alternative voice service in the area for which
relief was granted.

12. The Commission may declare that an
emergency exists in any area in which alternative voice service is not
available and where a competitive supplier has been granted relief from its
obligations as a provider of last resort pursuant to this section. If the
Commission declares an emergency pursuant to this subsection, the Commission
may:

(a) Take any steps necessary to protect the
health, safety and welfare of the affected residents or businesses and may
expedite the availability of alternative voice service to the affected
residents or businesses.

(b) Utilize the fund to maintain the availability
of telephone service to ensure that any affected resident or business has
access to alternative voice service.

(c) Issue an order imposing on a provider of
alternative voice service one or more obligations, including, without
limitation, the obligation to maintain adequate and reliable service for a
specified period, but such obligations may be imposed only to the extent that
the provider receives money from the fund to maintain the availability of
telephone service relating to the provision of service pursuant to the order
issued by the Commission pursuant to this paragraph.

13. If, as a result of the approval by the
Commission of an application filed pursuant to subsection 1, a residential
customer does not have access to telephone service, including alternative voice
service, the customer may, on or before May 31, 2016, file a request for
service with the Commission. Upon receipt of a request, the Commission shall
investigate whether such service is available to the customer. If the Commission
determines that service is not available, the Commission may order the
competitive supplier that received relief pursuant to this section to provide
service to the residential customer for a period specified by the Commission.
If a competitive supplier is ordered to provide service to a residential
customer pursuant to this subsection, the competitive supplier may satisfy its
obligation pursuant to this subsection by providing an alternative voice
service as provided in NRS 704.68881.

14. Except as otherwise provided in
subsections 12 and 13, a provider of alternative voice service that is not a
provider of last resort, or a competitive supplier that has been relieved of
its obligations as a provider of last resort, is not required to assume the
obligations of a provider of last resort.

15. As used in this section:

(a) “Alternative voice service” means a retail
voice service made available through any technology or service arrangement
other than satellite service that provides:

(1) Voice-grade access to the public
switched telephone network; and

(2) Access to emergency 911 service.

(b) “Public safety answering point” has the
meaning ascribed to it in NRS 707.500.

NRS 704.68887Anticompetitive acts and unlawful discrimination prohibited.In exercising flexibility in the rates,
pricing, terms and conditions of any telecommunication service, a competitive
supplier that is an incumbent local exchange carrier shall not engage in any
anticompetitive act or practice or unlawfully discriminate among similarly
situated customers.

1. “Coal” includes anthracite, bituminous
or subbituminous coal, and lignite.

2. “Cost of the conversion” means the cost
determined by the Commission to be reasonable and necessary for a conversion,
including the cost of:

(a) Engineering, administration and any legal
expenses;

(b) Environmental studies and control equipment;

(c) Equipment and facilities for the handling,
storage and combustion of coal;

(d) Equipment and facilities for the handling,
storage and disposal of the resulting waste, regardless of their location;

(e) Adapting or refurbishing boilers to permit
the combustion of coal; and

(f) Interest and other expenses relating to the
financing of the conversion,

Ê whether or
not those costs are incurred before the date of initial conversion. The term
does not include any costs incurred to expand the facility’s generating
capacity during the conversion.

3. “Cost saved” means the difference in
cost between an amount of coal and an equal amount of gas or oil calculated on
the basis of British thermal units.

4. “Date of initial conversion” means the
first day on which an existing facility for the generation of electricity which
was fired by gas or oil generates electricity for continuous distribution to customers
by the combustion of coal, whether or not additional work must be performed to
complete construction on or the conversion of the facility.

(Added to NRS by 1983, 751)

NRS 704.706Conversion of facility to allow firing by coal: Application for adjustment
of rates; public hearing.

1. A public utility proposing to convert
an existing facility in this state for the generation of electricity which is
fired by gas or oil to a facility which is also capable of being fired by coal
may apply to the Commission for an adjustment in its rates to permit its
recovery of the cost of the conversion.

2. After receipt of such an application,
the Commission shall hold a public hearing within 120 days to consider whether
to authorize such an adjustment and, if authorized, the methods to be used to
permit the recovery.

(Added to NRS by 1983, 752)

NRS 704.711Decision on application for adjustment; conditions; requirements
for approval; federal or state grants.

1. The Commission shall render its written
decision within 180 days after receiving the application for such an
adjustment.

2. The Commission shall render its
decision based on the record and may grant the application, deny it or grant it
according to such terms, conditions or modifications as the Commission finds
appropriate.

3. The Commission may grant an application
for such an adjustment if it determines that:

(a) There is substantial evidence that the
projected saving in fuel is greater than the cost of conversion.

(b) The conversion is consistent with and
included in the utility’s plan for resources.

(c) The conversion will substantially benefit the
utility’s customers.

4. If the applicant becomes, by reason of
the conversion, entitled to any federal or state grant, the Commission shall
make such determinations and issue such orders as are necessary to reduce the
amount of the cost of the conversion which the applicant would otherwise
recover by means of the adjustment. If such a grant is received after the
termination of the adjustment, the Commission shall make such determinations
and issue such orders as are necessary to return any excess collected to the
customers.

(Added to NRS by 1983, 752)

NRS 704.716Calculation of amount of adjustment; effect on rates, prices and
charges.

1. The amount of the adjustment must:

(a) Permit the applicant to recover the cost of
the conversion, net of any taxes which may be imposed on the applicant for
revenue received because of the adjustment, within the period of recovery
authorized by the Commission.

(b) Be at least two-thirds, but not more than
three-fourths, of the cost of the fuel saved.

2. The Commission shall not recognize,
when calculating any rate, price or charge, other than the amount of the
adjustment, the costs of the conversion subject to the requirements of this
section.

(Added to NRS by 1983, 752)

NRS 704.721Filing of tariff on date of conversion.On
the date of initial conversion, the public utility shall file with the
Commission a tariff which sets forth the adjustment in the rates authorized as
a result of the conversion.

(Added to NRS by 1983, 752)

NRS 704.726Annual accounting of cost of conversion and revenues from
adjustment in rates; termination of adjustment upon recovery of cost of
conversion.

1. A public utility shall annually present
to the Commission a certified accounting of the cost of conversion and an
accounting of the revenues it has received in that year from the adjustment in
its rates.

2. When a public utility has fully
recovered its share of the cost of conversion and the debt and interest thereon
are paid, or at the end of the period set for the recovery, whichever is
sooner, it shall:

(a) Stop the adjustment;

(b) Rescind the applicable tariff;

(c) Present the Commission with proof of the
public utility’s compliance with all orders of the Commission regarding the
adjustment; and

(d) Present the Commission with a complete
accounting of the cost of conversion and revenues it has received through the
adjustment.

3. If the proof so presented in subsection
2 shows that the revenue collected pursuant to the adjustment is not equal to
the public utility’s share of the cost of the conversion, the Commission shall
order any actions necessary to return any excess or collect the amount still
needed for full recovery.

(Added to NRS by 1983, 752)

NRS 704.731Faith of State pledged.The
faith of the State is hereby pledged that NRS 704.701
to 704.731, inclusive, will not be repealed,
amended or modified to impair any tariff or charge ordered by the Commission
pursuant to those sections.

(Added to NRS by 1983, 753)

Reduction of Emissions From Coal-Fired Electric Generating
Plants

NRS 704.7311Definitions.As
used in NRS 704.7311 to 704.7322,
inclusive, unless the context otherwise requires, the words and terms defined
in NRS 704.7312 to 704.7315,
inclusive, have the meanings ascribed to them in those sections.

NRS 704.7312“Coal-fired electric generating plant” defined.“Coal-fired electric generating plant” means
an electric generating plant which burns coal to produce electricity and which
is owned, in whole or in part, by an electric utility.

NRS 704.7315“Renewable energy facility” defined.“Renewable
energy facility” means an electric generating facility that uses renewable
energy to produce electricity. As used in this section, “renewable energy” has
the meaning ascribed to it in NRS 704.7811.

1. An electric utility shall file with the
Commission, as part of the plan required to be submitted pursuant to NRS 704.741, a comprehensive plan for the reduction of
emissions from coal-fired electric generating plants and the replacement of the
capacity of such plants with increased capacity from renewable energy
facilities and other electric generating plants.

2. The emissions reduction and capacity
replacement plan must provide:

(a) For the retirement or elimination of:

(1) Not less than 300 megawatts of
coal-fired electric generating capacity on or before December 31, 2014;

(2) In addition to the generating capacity
retired or eliminated pursuant to subparagraph (1), not less than 250 megawatts
of coal-fired electric generating capacity on or before December 31, 2017; and

(3) In addition to the generating capacity
retired or eliminated pursuant to subparagraphs (1) and (2), not less than 250
megawatts of coal-fired electric generating capacity on or before December 31,
2019.

Ê For the
purposes of this paragraph, the generating capacity of a coal-fired electric
generating plant must be determined by reference to the most recent resource
plan filed by the electric utility pursuant to NRS
704.741 and accepted by the Commission pursuant to NRS
704.751.

(1) Issue a request for proposals for 100
megawatts of electric generating capacity from new renewable energy facilities
on or before December 31, 2014;

(2) In addition to the request for
proposals issued pursuant to subparagraph (1), issue a request for proposals
for 100 megawatts of electric generating capacity from new renewable energy
facilities on or before December 31, 2015;

(3) In addition to the requests for
proposals issued pursuant to subparagraphs (1) and (2), issue a request for
proposals for 100 megawatts of electric generating capacity from new renewable
energy facilities on or before December 31, 2016;

(4) Review each proposal received pursuant
to subparagraphs (1), (2) and (3) and identify those renewable energy
facilities that will provide:

(I) The greatest economic benefit to
this State;

(II) The greatest opportunity for
the creation of new jobs in this State; and

(III) The best value to customers of
the electric utility;

(5) Negotiate, in good faith, to
construct, acquire or contract with the renewable energy facilities identified
pursuant to subparagraph (4), and file with the Commission an amendment to the
plan each time the utility wishes to construct, acquire or contract with such
facilities; and

(6) Begin, on or before December 31, 2017,
the construction or acquisition of a portion of new renewable energy facilities
with a generating capacity of 50 megawatts to be owned and operated by the
electric utility, and complete construction of such facilities on or before
December 31, 2021.

Ê For the
purposes of this paragraph, the generating capacity of a renewable energy
facility must be determined by the nameplate capacity of the facility.

(c) For the electric utility to construct or
acquire and own electric generating plants with an electric generating capacity
of 550 megawatts, which must be constructed or acquired to replace, in an
orderly and structured manner, the coal-fired electric generating capacity
retired or eliminated pursuant to paragraph (a).

(d) If the plan includes the construction or
acquisition of one or more natural gas-fired electric generating plants, a
strategy for the commercially reasonable physical procurement of fixed-price
natural gas by the electric utility.

(e) A plan for tracking and specifying the
accounting treatment for all costs associated with the decommissioning of the
coal-fired electric generating plants identified for retirement or elimination.

Ê For the
purposes of this subsection, an electric utility shall be deemed to own, acquire,
retire or eliminate only its pro rata portion of any electric generating
facility that is not wholly owned by the electric utility and, except as
otherwise provided in paragraph (b), “capacity” means an amount of firm
electric generating capacity used by the electric utility for the purpose of
preparing a plan filed with the Commission pursuant to NRS
704.736 to 704.754, inclusive.

3. In addition to the requirements for an
emissions reduction and capacity replacement plan set forth in subsection 2,
the plan may include additional utility facilities, electric generating plants,
elements or programs necessary to carry out the plan, including, without
limitation:

(a) The construction of natural gas pipelines
necessary for the operation of any new natural gas-fired electric generating
plants included in the plan;

(b) Entering into contracts for the
transportation of natural gas necessary for the operation of any natural
gas-fired electric generating plants included in the plan; and

(c) The construction of transmission lines and
related infrastructure necessary for the operation or interconnection of any
electric generating plants included in the plan.

NRS 704.7317Electric utility required to record certain amounts in
regulatory asset.An electric
utility shall, upon the completion of construction or acquisition of any
electric generating plant or other facility constructed or acquired pursuant to
an emissions reduction and capacity replacement plan accepted by the Commission
pursuant to NRS 704.751, begin recording in a
regulatory asset, with carrying charges, an amount that reflects a return on
the electric utility’s investment in the facility, depreciation of the
utility’s investment in the facility and the cost of operating and maintaining
the facility.

NRS 704.7318Sites used for production of electricity from coal-fired
electric generating plant: Remediation or reuse; regulation of emissions from
electric generating plants constructed on sites.

1. To ensure the remediation and, when
possible, the reuse of any site used for the production of electricity from a
coal-fired electric generating plant in this State, the Division of
Environmental Protection of the State Department of Conservation and Natural
Resources has exclusive jurisdiction to supervise and regulate the remediation
of such sites, including, without limitation, exclusive authority to regulate
and supervise the remediation of surface water and groundwater and solid-waste
disposal operations located at such a site.

2. The Division of Environmental
Protection has exclusive authority to regulate emissions from any electric
generating plant constructed on a site previously used for the production of
electricity from a coal-fired electric generating plant.

NRS 704.7319General rate proceedings filed before June 1, 2018, which
include request to recover certain costs.If,
in any general rate proceeding filed by an electric utility before June 1,
2018, the utility includes a request for recovery of any amount related to the
implementation of an emissions reduction and capacity replacement plan and
recovery of such an amount would result in an increase in the electric
utility’s total revenue requirement of more than 5 percent, the utility must
propose a method or mechanism by which such excess may be mitigated. The
Commission may accept or reject such a rate method or mechanism. If the
mitigation method or mechanism is approved by the Commission, the utility shall
record any deferred revenue in a regulatory asset account and may calculate
carrying charges on the unamortized balance of the regulatory asset.

NRS 704.732Amendment to utility’s emissions reduction and capacity
replacement plan required when utility requests approval and acceptance by
Commission of contract with new renewable energy facility.

1. An electric utility shall file with the
Commission an amendment to the utility’s emissions reduction and capacity
replacement plan each time the utility requests approval and acceptance by the
Commission of any contract with a new renewable energy facility as the result
of a request for proposals pursuant to the current emissions reduction and
capacity replacement plan. The Commission may approve and accept the renewable
energy facility if the Commission determines that:

(a) The facility is a renewable energy system as
defined in NRS 704.7815; and

(b) The terms and conditions of the contract are
just and reasonable and satisfy the capacity requirements set forth in
subsection 2 of NRS 704.7316.

2. In considering a contract pursuant to
subsection 1, the Commission shall, in addition to considering the cost to
customers of the electric utility, give consideration to those contracts or
renewable energy facilities that will provide:

(a) The greatest economic benefit to this State;

(b) The greatest opportunity for the creation of
new jobs in this State; and

NRS 704.7321Commission may recommend to electric utility modification of or
amendment to emissions reduction and capacity replacement plan.If the Commission deems inadequate any portion
of an emissions reduction and capacity replacement plan or any amendment to the
plan, the Commission may recommend to the electric utility a modification of
that portion of the plan or amendment, and the electric utility may:

NRS 704.736Applicability.The
application of NRS 704.736 to 704.754, inclusive, is limited to any public utility
in the business of supplying electricity which has an annual operating revenue
in this state of $2,500,000 or more.

1. A utility which supplies electricity in
this state may apply to the Commission for authority to charge, as part of a
program of optional pricing, a higher rate for electricity that is generated
from renewable energy.

2. The program may provide the customers
of the utility with the option of paying a higher rate for electricity to
support the increased use by the utility of renewable energy in the generation
of electricity.

3. As used in this section, “renewable
energy” has the meaning ascribed to it in NRS 704.7811.

1. A utility which supplies electricity in
this State shall, on or before July 1 of every third year, in the manner
specified by the Commission, submit a plan to increase its supply of
electricity or decrease the demands made on its system by its customers to the
Commission.

2. The Commission shall, by regulation:

(a) Prescribe the contents of such a plan,
including, but not limited to, the methods or formulas which are used by the
utility to:

(1) Forecast the future demands; and

(2) Determine the best combination of
sources of supply to meet the demands or the best method to reduce them; and

(a) An energy efficiency program for residential
customers which reduces the consumption of electricity or any fossil fuel and
which includes, without limitation, the use of new solar thermal energy
sources; and

(b) A comparison of a diverse set of scenarios of
the best combination of sources of supply to meet the demands or the best
methods to reduce the demands, which must include at least one scenario of low
carbon intensity.

4. The Commission shall require the
utility to include in its plan a plan for construction or expansion of
transmission facilities to serve renewable energy zones and to facilitate the
utility in meeting the portfolio standard established by NRS 704.7821.

5. As used in this section:

(a) “Carbon intensity” means the amount of carbon
by weight emitted per unit of energy consumed.

(b) “Renewable energy zones” means specific
geographic zones where renewable energy resources are sufficient to develop
generation capacity and where transmission constrains the delivery of
electricity from those resources to customers.

NRS 704.746Public hearing on adequacy of plan; determination by Commission.

1. After a utility has filed its plan
pursuant to NRS 704.741, the Commission shall
convene a public hearing on the adequacy of the plan.

2. The Commission shall determine the
parties to the public hearing on the adequacy of the plan. A person or
governmental entity may petition the Commission for leave to intervene as a
party. The Commission must grant a petition to intervene as a party in the
hearing if the person or entity has relevant material evidence to provide
concerning the adequacy of the plan. The Commission may limit participation of
an intervener in the hearing to avoid duplication and may prohibit continued
participation in the hearing by an intervener if the Commission determines that
continued participation will unduly broaden the issues, will not provide
additional relevant material evidence or is not necessary to further the public
interest.

3. In addition to any party to the
hearing, any interested person may make comments to the Commission regarding
the contents and adequacy of the plan.

4. After the hearing, the Commission shall
determine whether:

(a) The forecast requirements of the utility are
based on substantially accurate data and an adequate method of forecasting.

(b) The plan identifies and takes into account
any present and projected reductions in the demand for energy that may result
from measures to improve energy efficiency in the industrial, commercial,
residential and energy producing sectors of the area being served.

(c) The plan adequately demonstrates the
economic, environmental and other benefits to this State and to the customers
of the utility, associated with the following possible measures and sources of
supply:

(1) Improvements in energy efficiency;

(2) Pooling of power;

(3) Purchases of power from neighboring
states or countries;

(4) Facilities that operate on solar or
geothermal energy or wind;

(5) Facilities that operate on the
principle of cogeneration or hydrogeneration;

(6) Other generation facilities; and

(7) Other transmission facilities.

5. The Commission may give preference to
the measures and sources of supply set forth in paragraph (c) of subsection 4
that:

(a) Provide the greatest economic and
environmental benefits to the State;

(b) Are consistent with the provisions of this
section;

(c) Provide levels of service that are adequate
and reliable; and

(d) Provide the greatest opportunity for the
creation of new jobs in this State.

6. The Commission shall:

(a) Adopt regulations which determine the level
of preference to be given to those measures and sources of supply; and

(b) Consider the value to the public of using
water efficiently when it is determining those preferences.

7. The Commission shall:

(a) Consider the level of financial commitment
from developers of renewable energy projects in each renewable energy zone, as
designated pursuant to subsection 2 of NRS 704.741;
and

(b) Adopt regulations establishing a process for
considering such commitments including, without limitation, contracts for the
sale of energy, leases of land and mineral rights, cash deposits and letters of
credit.

8. The Commission shall, after a hearing,
review and accept or modify an emissions reduction and capacity replacement
plan which includes each element required by NRS
704.7316. In considering whether to accept or modify an emissions reduction
and capacity replacement plan, the Commission shall consider:

(a) The cost to the customers of the electric
utility to implement the plan;

(b) Whether the plan provides the greatest
economic benefit to this State;

(c) Whether the plan provides the greatest
opportunities for the creation of new jobs in this State; and

(d) Whether the plan represents the best value to
the customers of the electric utility.

1. After a utility has filed the plan
required pursuant to NRS 704.741, the Commission
shall issue an order accepting the plan as filed or specifying any portions of
the plan it deems to be inadequate:

(a) Within 135 days for any portion of the plan
relating to the energy supply plan for the utility for the 3 years covered by
the plan; and

(b) Within 180 days for all portions of the plan
not described in paragraph (a).

2. If a utility files an amendment to a
plan, the Commission shall issue an order accepting the amendment as filed or
specifying any portions of the amendment it deems to be inadequate:

(a) Within 135 days after the filing of the
amendment; or

(b) Within 180 days after the filing of the
amendment for all portions of the amendment which contain an element of the
emissions reduction and capacity replacement plan.

3. All prudent and reasonable expenditures
made to develop the utility’s plan, including environmental, engineering and
other studies, must be recovered from the rates charged to the utility’s
customers.

4. The Commission may accept a
transmission plan submitted pursuant to subsection 4 of NRS
704.741 for a renewable energy zone if the Commission determines that the
construction or expansion of transmission facilities would facilitate the
utility meeting the portfolio standard, as defined in NRS
704.7805.

5. The Commission shall adopt regulations
establishing the criteria for determining the adequacy of a transmission plan
submitted pursuant to subsection 4 of NRS 704.741.

6. Any order issued by the Commission
accepting an element of an emissions reduction and capacity replacement plan
must include provisions authorizing the electric utility to construct or
acquire and own electric generating plants necessary to meet the capacity
amounts approved in, and carry out the provisions of, the plan. As used in this
subsection, “capacity” means an amount of firm electric generating capacity
used by the electric utility for the purpose of preparing a plan filed with the
Commission pursuant to NRS 704.736 to 704.754, inclusive.

NRS 704.754Reports regarding transmission plan.On
or before February 15 of each odd-numbered year, the Commission shall review,
approve and submit to the Director of the Legislative Counsel Bureau for
transmittal to the next regular session of the Legislature a written report
compiling all information about any transmission plan proposed by, adopted by
or made known to the Commission since the last report.

NRS 704.7561Definitions.As
used in NRS 704.7561 to 704.7595,
inclusive, unless the context otherwise requires, the words and terms defined
in NRS 704.7565 to 704.7581,
inclusive, have the meanings ascribed to them in those sections.

NRS 704.7565“Affiliate” defined.“Affiliate”
means a person who, directly or indirectly through one or more intermediaries,
controls, is controlled by or is under common control with an electric utility.

NRS 704.7568“Dispose of a generation asset” defined.“Dispose of a generation asset” means to:

1. Sell, lease, assign, transfer or divest
an interest in a generation asset, in whole or in part, to another person; or

2. Perform any promise, covenant or
obligation to sell, lease, assign, transfer or divest an interest in a
generation asset, in whole or in part, to another person pursuant to the terms
of a contract or agreement executed before, on or after April 18, 2001, unless,
before April 18, 2001:

(a) All terms and conditions of the contract or
agreement were satisfied; and

(b) All parties to the contract or agreement
fully performed all promises, covenants and obligations under the contract or
agreement.

(2) Holds a certificate of public
convenience and necessity issued or transferred pursuant to this chapter; and

(3) In the most recently completed
calendar year or in any other calendar year within the 7 calendar years
immediately preceding the most recently completed calendar year, had a gross
operating revenue of $250,000,000 or more in this state;

(b) A subsidiary or affiliate of such a public
utility;

(c) A holding company or other person that holds
a controlling interest in such a public utility; and

(d) A successor in interest to any public
utility, subsidiary, affiliate, holding company or person described in
paragraph (a), (b) or (c).

2. The term does not include a cooperative
association, nonprofit corporation, nonprofit association or provider of
electric service which is declared to be a public utility pursuant to NRS 704.673 and which provides service only to its
members.

(a) Converts other forms of energy into
electricity or otherwise produces electricity;

(b) Is or was owned, possessed, controlled,
leased, operated, administered, maintained, acquired or placed into service by
an electric utility before, on or after January 1, 2001;

(c) Is subject, in whole or in part, to
regulation by the Commission; and

(d) Is used and useful for the convenience of the
public in this State, as determined by the Commission.

2. The term does not include:

(a) Any hydroelectric plant, facility, equipment
or system which has a generating capacity of not more than 15 megawatts and
which is located on the Truckee River or on a waterway that is appurtenant to
or connected to the Truckee River.

1. “Interest in a generation asset” means
any interest, in whole or in part, in the physical plant, facility, equipment
or system that makes up the generation asset, whether such interest is legal or
equitable, present or future, or contingent or vested.

2. The term does not include any interest
in the electricity or other energy produced by the generation asset.

NRS 704.7585Provisions do not prohibit certain transactions involving
generation assets or other property.The
provisions of NRS 704.7561 to 704.7595, inclusive, do not prohibit an electric
utility from pledging, mortgaging, granting a security interest in or otherwise
encumbering any of its generation assets or other property for the purpose of
securing indebtedness of the electric utility which exists on April 18, 2001,
or which is issued or incurred by the electric utility after April 18, 2001, in
financing transactions approved by the Commission.

NRS 704.7588Conditions and limitations on disposal of generation assets;
approval of Commission required; application; parties; effect of certain
orders.Except as otherwise
provided in NRS 704.7311 to 704.7322, inclusive, and 704.7591:

1. Before July 1, 2003, an electric
utility shall not dispose of a generation asset.

2. On or after July 1, 2003, an electric
utility shall not dispose of a generation asset unless, before the disposal,
the Commission approves the disposal by a written order issued in accordance
with the provisions of this section.

3. Not sooner than January 1, 2003, an
electric utility may file with the Commission an application to dispose of a
generation asset on or after July 1, 2003. If an electric utility files such an
application, the Commission shall not approve the application unless the
Commission finds that the disposal of the generation asset will be in the
public interest. The Commission shall issue a written order approving or
disapproving the application. The Commission may base its approval of the
application upon such terms, conditions or modifications as the Commission
deems appropriate.

4. If an electric utility files an
application to dispose of a generation asset, the Consumer’s Advocate shall be
deemed a party of record.

5. If the Commission approves an
application to dispose of a generation asset before July 1, 2003, the order of
the Commission approving the application:

(a) May not become effective sooner than July 1,
2003;

(b) Does not create any vested rights before the
effective date of the order; and

(c) For the purposes of NRS 703.373, shall be deemed a final
decision on the date on which the order is issued by the Commission.

1. An electric utility may dispose of its
generation assets pursuant to a merger, acquisition or transaction that is
authorized pursuant to NRS 704.329 or pursuant to a
transfer of its certificate of public convenience and necessity that is
authorized pursuant to NRS 704.410, if:

(a) The electric utility disposes of
substantially all of its generation assets and substantially all of its other
assets to the other person in the merger, acquisition, transaction or transfer;
and

(b) The other person in the merger, acquisition,
transaction or transfer is not a subsidiary or affiliate of the electric
utility or a holding company or other person that holds a controlling interest
in the electric utility.

2. Any person who assumes or has assumed
ownership, possession, control, operation, administration or maintenance of a
generation asset pursuant to a merger, acquisition, transaction or transfer
described in subsection 1 is subject to the provisions of NRS 704.7561 to 704.7595,
inclusive.

NRS 704.7595Effect of violation.If
an electric utility disposes of a generation asset in violation of NRS 704.7561 to 704.7595,
inclusive, the disposal is void and unenforceable and is not valid for any
purpose.

1. On and after October 1, 2001, each
electric utility shall disclose to its retail customers information about
electric services, and any products and services relating thereto, that are
being provided to or purchased for those retail customers by the electric
utility. The disclosure must:

(a) Be in a standard, uniform format established
by the Commission by regulation;

(b) Be included:

(1) At least two times each calendar year,
as an insert in the bills that the electric utility sends to its retail
customers; and

(2) If the electric utility maintains a
website on the Internet or any successor to the Internet, on that website; and

(c) Include adequate information so that a retail
customer can readily evaluate the retail customer’s options for obtaining
electric services or any products or services relating thereto.

2. A disclosure required by this section
must include, if applicable:

(a) The average mix of energy sources used to
generate the electricity sold by the electric utility to the retail customer.
An electric utility may, if available, use a regional average that has been
determined by the Commission for that portion of electricity sold by the
electric utility to the retail customer for which the specific mix of energy
sources cannot be discerned.

(b) The average emissions, measured in pounds per
megawatt-hour, of:

(1) Any high-level radioactive waste,
sulfur dioxide, carbon dioxide, oxides of nitrogen and heavy metals released in
this state from the generation of the electricity sold by the electric utility
to the retail customer; and

(2) Any other substances released in this
state from the generation of the electricity sold by the electric utility to
the retail customer which the Commission, in cooperation with the Division of
Environmental Protection of the State Department of Conservation and Natural
Resources, determines may cause a significant health or environmental impact
and for which sufficiently accurate and reliable data is available.

Ê If an
electric utility uses a regional average for the mix of energy sources pursuant
to paragraph (a), the electric utility shall, if available, use for the average
emissions pursuant to this paragraph a regional calculation that has been
determined by the Commission.

(c) Information concerning customer service.

(d) Information concerning any energy programs
that provide assistance to retail customers with low incomes, including,
without limitation, information on the procedures to apply for such programs.

3. An electric utility:

(a) Shall make the disclosures required pursuant
to this section in accordance with the requirements adopted by the Commission
as to form and substance; and

(b) Shall ensure that it provides the information
in compliance with all applicable state and federal laws governing unfair advertising
and labeling.

4. The Commission shall adopt such
regulations concerning form and substance for the disclosures required by this
section as are necessary to ensure that retail customers are provided with
sufficient information so that they can readily evaluate their options for
obtaining electric services and any products and services relating thereto.

5. The provisions of this section do not
require an electric utility to disclose to its retail customers any information
about electric services, and any products and services relating thereto, that
are subject to the provisions of chapter 704B
of NRS.

1. The Commission shall adopt regulations
requiring each electric utility to disclose to its retail customers information
about the safe disposal and recycling of electronic waste, electrical systems
and other waste, including, without limitation, compact fluorescent light
bulbs, in accordance with the comprehensive state energy plan established by
the Director of the Office of Energy pursuant to NRS 701.190. The disclosure must:

(a) Be in a standard, uniform format established
by the Commission by regulation; and

(b) Be included:

(1) At least two times each calendar year,
as an insert in the bills that the electric utility sends to its retail
customers; and

(2) If the electric utility maintains a
website on the Internet or any successor to the Internet, on that website.

2. As used in this section, “electric
utility” has the meaning ascribed to it in NRS 704.187.

NRS 704.767Definitions.As
used in NRS 704.766 to 704.775,
inclusive, unless the context otherwise requires, the words and terms defined
in NRS 704.7675 to 704.772,
inclusive, have the meanings ascribed to them in those sections.

NRS 704.7675“Contiguous” defined.“Contiguous”
means either abutting directly on the boundary or separated by a street, alley,
public right-of-way, creek, river or the right-of-way of a railroad or other
public service corporation.

NRS 704.769“Net metering” defined.“Net
metering” means measuring the difference between the electricity supplied by a
utility and the electricity generated by a customer-generator which is fed back
to the utility over the applicable billing period.

1. A utility shall offer net metering, as
set forth in NRS 704.775, to the
customer-generators operating within its service area until the cumulative
capacity of all net metering systems operating in this State is equal to 2
percent of the total peak capacity of all utilities in this State.

2. If the net metering system of a
customer-generator who accepts the offer of a utility for net metering has a
capacity of not more than 25 kilowatts, the utility:

(a) Shall offer to make available to the
customer-generator an energy meter that is capable of registering the flow of
electricity in two directions.

(b) May, at its own expense and with the written
consent of the customer-generator, install one or more additional meters to
monitor the flow of electricity in each direction.

(c) Shall not charge a customer-generator any fee
or charge that would increase the customer-generator’s minimum monthly charge
to an amount greater than that of other customers of the utility in the same
rate class as the customer-generator.

3. If the net metering system of a
customer-generator who accepts the offer of a utility for net metering has a
capacity of more than 25 kilowatts, the utility:

(a) May require the customer-generator to install
at its own cost:

(1) An energy meter that is capable of
measuring generation output and customer load; and

(2) Any upgrades to the system of the
utility that are required to make the net metering system compatible with the
system of the utility.

(b) Except as otherwise provided in paragraph
(c), may charge the customer-generator any applicable fee or charge charged to
other customers of the utility in the same rate class as the
customer-generator, including, without limitation, customer, demand and
facility charges.

(c) Shall not charge the customer-generator any
standby charge.

Ê At the time
of installation or upgrade of any portion of a net metering system, the utility
must allow a customer-generator governed by this subsection to pay the entire
cost of the installation or upgrade of the portion of the net metering system.

4. If the net metering system of a
customer-generator is a net metering system described in paragraph (b) or (c)
of subsection 1 of NRS 704.771 and:

(a) The system is intended primarily to offset
part or all of the customer-generator’s requirements for electricity on
property contiguous to the property on which the net metering system is
located; and

(b) The customer-generator sells or transfers his
or her interest in the contiguous property,

Ê the net
metering system ceases to be eligible to participate in net metering.

5. The Commission shall adopt regulations
prescribing the form and substance for a net metering tariff and a standard net
metering contract. The regulations must include, without limitation:

(a) The particular provisions, limitations and
responsibilities of a customer-generator which must be included in a net
metering tariff with regard to:

(1) Metering equipment;

(2) Net energy metering and billing; and

(3) Interconnection,

Ê based on the
allowable size of the net metering system.

(b) The particular provisions, limitations and
responsibilities of a customer-generator and the utility which must be included
in a standard net metering contract.

(c) A timeline for processing applications and
contracts for net metering applicants.

(d) Any other provisions the Commission finds
necessary to carry out the provisions of NRS 704.766
to 704.775, inclusive.

1. A utility shall offer net metering, as
set forth in NRS 704.775, to the
customer-generators operating within its service area until the cumulative
capacity of all net metering systems operating in this State is equal to 3
percent of the total peak capacity of all utilities in this State.

2. If the net metering system of a
customer-generator who accepts the offer of a utility for net metering has a
capacity of not more than 25 kilowatts, the utility:

(a) Shall offer to make available to the customer-generator
an energy meter that is capable of registering the flow of electricity in two
directions.

(b) May, at its own expense and with the written
consent of the customer-generator, install one or more additional meters to
monitor the flow of electricity in each direction.

(c) Except as otherwise provided in subsection 5,
shall not charge a customer-generator any fee or charge that would increase the
customer-generator’s minimum monthly charge to an amount greater than that of
other customers of the utility in the same rate class as the
customer-generator.

3. If the net metering system of a
customer-generator who accepts the offer of a utility for net metering has a
capacity of more than 25 kilowatts, the utility:

(a) May require the customer-generator to install
at its own cost:

(1) An energy meter that is capable of
measuring generation output and customer load; and

(2) Any upgrades to the system of the
utility that are required to make the net metering system compatible with the
system of the utility.

(b) Except as otherwise provided in paragraph (c)
and subsection 5, may charge the customer-generator any applicable fee or
charge charged to other customers of the utility in the same rate class as the
customer-generator, including, without limitation, customer, demand and
facility charges.

(c) Shall not charge the customer-generator any
standby charge.

Ê At the time
of installation or upgrade of any portion of a net metering system, the utility
must allow a customer-generator governed by this subsection to pay the entire
cost of the installation or upgrade of the portion of the net metering system.

4. If the net metering system of a
customer-generator is a net metering system described in paragraph (b) or (c)
of subsection 1 of NRS 704.771 and:

(a) The system is intended primarily to offset
part or all of the customer-generator’s requirements for electricity on
property contiguous to the property on which the net metering system is
located; and

(b) The customer-generator sells or transfers his
or her interest in the contiguous property,

Ê the net
metering system ceases to be eligible to participate in net metering.

5. A utility shall assess against a
customer-generator:

(a) If applicable, the universal energy charge
imposed pursuant to NRS 702.160; and

(b) Any charges imposed pursuant to chapter 701B of NRS or NRS
704.7827 or 704.785 which are assessed against
other customers in the same rate class as the customer-generator.

Ê For any such
charges calculated on the basis of a kilowatt-hour rate, the customer-generator
must only be charged with respect to kilowatt-hours of energy delivered by the
utility to the customer-generator.

6. The Commission shall adopt regulations
prescribing the form and substance for a net metering tariff and a standard net
metering contract. The regulations must include, without limitation:

(a) The particular provisions, limitations and
responsibilities of a customer-generator which must be included in a net
metering tariff with regard to:

(1) Metering equipment;

(2) Net energy metering and billing; and

(3) Interconnection,

Ê based on the
allowable size of the net metering system.

(b) The particular provisions, limitations and
responsibilities of a customer-generator and the utility which must be included
in a standard net metering contract.

(c) A timeline for processing applications and
contracts for net metering applicants.

(d) Any other provisions the Commission finds
necessary to carry out the provisions of NRS 704.766
to 704.775, inclusive.

2. The net energy measurement must be
calculated in the following manner:

(a) The utility shall measure, in kilowatt-hours,
the net electricity produced or consumed during the billing period, in
accordance with normal metering practices.

(b) If the electricity supplied by the utility
exceeds the electricity generated by the customer-generator which is fed back
to the utility during the billing period, the customer-generator must be billed
for the net electricity supplied by the utility.

(c) If the electricity generated by the
customer-generator which is fed back to the utility exceeds the electricity
supplied by the utility during the billing period:

(1) Neither the utility nor the
customer-generator is entitled to compensation for the electricity provided to
the other during the billing period.

(2) The excess electricity which is fed
back to the utility during the billing period is carried forward to the next
billing period as an addition to the kilowatt-hours generated by the
customer-generator in that billing period. If the customer-generator is billed
for electricity pursuant to a time-of-use rate schedule, the excess electricity
carried forward must be added to the same time-of-use period as the time-of-use
period in which it was generated unless the subsequent billing period lacks a
corresponding time-of-use period. In that case, the excess electricity carried
forward must be apportioned evenly among the available time-of-use periods.

(3) Excess electricity may be carried
forward to subsequent billing periods indefinitely, but a customer-generator is
not entitled to receive compensation for any excess electricity that remains
if:

(I) The net metering system ceases
to operate or is disconnected from the utility’s transmission and distribution
facilities;

(II) The customer-generator ceases
to be a customer of the utility at the premises served by the net metering
system; or

(III) The customer-generator
transfers the net metering system to another person.

(4) The value of the excess electricity
must not be used to reduce any other fee or charge imposed by the utility.

3. If the cost of purchasing and
installing a net metering system was paid for:

(a) In whole or in part by a utility, the
electricity generated by the net metering system shall be deemed to be
electricity that the utility generated or acquired from a renewable energy
system for the purposes of complying with its portfolio standard pursuant to NRS 704.7801 to 704.7828,
inclusive.

(b) Entirely by a customer-generator, the
Commission shall issue to the customer-generator portfolio energy credits for
use within the system of portfolio energy credits adopted by the Commission
pursuant to NRS 704.7821 and 704.78213 equal to the electricity generated by the
net metering system.

4. A bill for electrical service is due at
the time established pursuant to the terms of the contract between the utility
and the customer-generator.

NRS 704.7801Definitions.As
used in NRS 704.7801 to 704.7828,
inclusive, unless the context otherwise requires, the words and terms defined
in NRS 704.7802 to 704.7819,
inclusive, have the meanings ascribed to them in those sections.

(1) The measure is installed or
implemented on or after January 1, 2005, at the service location of or for a
retail customer of a provider of electric service in this State;

(2) The measure reduces the consumption of
energy by one or more retail customers; and

(3) The costs of the acquisition,
installation or implementation of the measure are directly reimbursed, in whole
or in part, by the provider of electric service, or by a customer of a provider
of new electric resources pursuant to chapter
704B of NRS; or

(b) Which is a geothermal energy system for the
provision of heated water to one or more customers and which reduces the
consumption of electricity or any fossil fuel, regardless of when constructed.

2. The term does not include any demand
response measure or load limiting measure that shifts the consumption of energy
by a retail customer from one period to another period.

NRS 704.7803“Portfolio energy credit” defined.“Portfolio
energy credit” means any credit which a provider has earned from a portfolio
energy system or efficiency measure and which the provider is entitled to use
to comply with its portfolio standard, as determined by the Commission.

(a) Placed into operation before July 1, 1997, if
a provider of electric service used electricity generated or acquired from the
renewable energy system to satisfy its portfolio standard before July 1, 2009;
or

(b) Placed into operation on or after July 1,
1997; or

2. Any energy efficiency measure installed
on or before December 31, 2019.

NRS 704.7805“Portfolio standard” defined.“Portfolio
standard” means the amount of electricity that a provider must generate,
acquire or save from portfolio energy systems or efficiency measures, as
established by the Commission pursuant to NRS 704.7821
and 704.78213.

1. “Provider of electric service” and
“provider” mean any person or entity that is in the business of selling
electricity to retail customers for consumption in this State, regardless of
whether the person or entity is otherwise subject to regulation by the
Commission.

2. The term includes, without limitation,
a provider of new electric resources that is selling electricity to an eligible
customer for consumption in this State pursuant to the provisions of chapter 704B of NRS.

3. The term does not include:

(a) This State or an agency or instrumentality of
this State.

(b) A rural electric cooperative established
pursuant to chapter 81 of NRS.

(c) A general improvement district established
pursuant to chapter 318 of NRS.

(e) A cooperative association, nonprofit
corporation, nonprofit association or provider of electric service which is
declared to be a public utility pursuant to NRS 704.673
and which provides service only to its members.

(f) A landlord of a mobile home park or owner of
a company town who is subject to any of the provisions of NRS 704.905 to 704.960,
inclusive.

(g) A landlord who pays for electricity that is
delivered through a master meter and who distributes or resells the electricity
to one or more tenants for consumption in this State.

1. “Qualified energy recovery process”
means a system with a nameplate capacity of not more than 15 megawatts that
converts the otherwise lost energy from:

(a) The heat from exhaust stacks or pipes used
for engines or manufacturing or industrial processes; or

(b) The reduction of high pressure in water or
gas pipelines before the distribution of the water or gas,

Ê to generate
electricity if the system does not use additional fossil fuel or require a
combustion process to generate such electricity.

2. The term does not include any system
that uses energy, lost or otherwise, from a process whose primary purpose is
the generation of electricity, including, without limitation, any process
involving engine-driven generation or pumped hydrogeneration.

2. The term does not include coal, natural
gas, oil, propane or any other fossil fuel, or nuclear energy.

3. As used in this section, “waterpower”
means power derived from standing, running or falling water which is used for
any plant, facility, equipment or system to generate electricity if the
generating capacity of the plant, facility, equipment or system is not more
than 30 megawatts. Except as otherwise provided in this subsection, the term
includes, without limitation, power derived from water that has been pumped
from a lower to a higher elevation if the generating capacity of the plant,
facility, equipment or system for which the water is used is not more than 30
megawatts. The term does not include power:

(a) Derived from water stored in a reservoir by a
dam or similar device, unless:

(1) The water is used exclusively for
irrigation;

(2) The dam or similar device was in
existence on January 1, 2003; and

(3) The generating capacity of the plant,
facility, equipment or system for which the water is used is not more than 30
megawatts;

(b) That requires a new or increased
appropriation or diversion of water for its creation; or

(c) That requires the use of any fossil fuel for
its creation, unless:

(1) The primary purpose of the use of the
fossil fuel is not the creation of the power; and

(2) The generating capacity of the plant,
facility, equipment or system for which the water is used is not more than 30
megawatts.

1. A facility or energy system that uses
renewable energy or energy from a qualified energy recovery process to generate
electricity and:

(a) Uses the electricity that it generates from
renewable energy or energy from a qualified recovery process in this State; or

(b) Transmits or distributes the electricity that
it generates from renewable energy or energy from a qualified energy recovery
process to a provider of electric service for delivery into and use in this
State.

2. A solar energy system that reduces the
consumption of electricity or any fossil fuel.

3. A net metering system used by a
customer-generator pursuant to NRS 704.766 to 704.775, inclusive.

1. “Retail customer” means an end-use
customer that purchases electricity for consumption in this state.

2. The term includes, without limitation:

(a) This state, a political subdivision of this
state or an agency or instrumentality of this state or political subdivision of
this state when it is an end-use customer that purchases electricity for
consumption in this state, including, without limitation, when it is an
eligible customer that purchases electricity for consumption in this state from
a provider of new electric resources pursuant to the provisions of chapter 704B of NRS.

(b) A residential, commercial or industrial
end-use customer that purchases electricity for consumption in this state,
including, without limitation, an eligible customer that purchases electricity
for consumption in this state from a provider of new electric resources
pursuant to the provisions of chapter 704B
of NRS.

(c) A landlord of a mobile home park or owner of a
company town who is subject to any of the provisions of NRS
704.905 to 704.960, inclusive.

(d) A landlord who pays for electricity that is
delivered through a master meter and who distributes or resells the electricity
to one or more tenants for consumption in this state.

1. For each provider of electric service,
the Commission shall establish a portfolio standard. The portfolio standard
must require each provider to generate, acquire or save electricity from
portfolio energy systems or efficiency measures in an amount that is:

(a) For calendar years 2005 and 2006, not less
than 6 percent of the total amount of electricity sold by the provider to its
retail customers in this State during that calendar year.

(b) For calendar years 2007 and 2008, not less
than 9 percent of the total amount of electricity sold by the provider to its
retail customers in this State during that calendar year.

(c) For calendar years 2009 and 2010, not less
than 12 percent of the total amount of electricity sold by the provider to its
retail customers in this State during that calendar year.

(d) For calendar years 2011 and 2012, not less
than 15 percent of the total amount of electricity sold by the provider to its
retail customers in this State during that calendar year.

(e) For calendar years 2013 and 2014, not less
than 18 percent of the total amount of electricity sold by the provider to its
retail customers in this State during that calendar year.

(f) For calendar years 2015 through 2019,
inclusive, not less than 20 percent of the total amount of electricity sold by
the provider to its retail customers in this State during that calendar year.

(g) For calendar years 2020 through 2024,
inclusive, not less than 22 percent of the total amount of electricity sold by
the provider to its retail customers in this State during that calendar year.

(h) For calendar year 2025 and for each calendar
year thereafter, not less than 25 percent of the total amount of electricity
sold by the provider to its retail customers in this State during that calendar
year.

2. In addition to the requirements set
forth in subsection 1, the portfolio standard for each provider must require
that:

(a) Of the total amount of electricity that the
provider is required to generate, acquire or save from portfolio energy systems
or efficiency measures during each calendar year, not less than:

(1) For calendar years 2009 through 2015,
inclusive, 5 percent of that amount must be generated or acquired from solar
renewable energy systems.

(2) For calendar year 2016 and for each
calendar year thereafter, 6 percent of that amount must be generated or
acquired from solar renewable energy systems.

(b) Of the total amount of electricity that the
provider is required to generate, acquire or save from portfolio energy systems
or efficiency measures:

(1) During calendar years 2013 and 2014,
not more than 25 percent of that amount may be based on energy efficiency
measures;

(2) During each calendar year 2015 to
2019, inclusive, not more than 20 percent of that amount may be based on energy
efficiency measures;

(3) During each calendar year 2020 to
2024, inclusive, not more than 10 percent of that amount may be based on energy
efficiency measures; and

(4) For calendar year 2025 and each
calendar year thereafter, no portion of that amount may be based on energy
efficiency measures.

Ê If the
provider intends to use energy efficiency measures to comply with its portfolio
standard during any calendar year, of the total amount of electricity saved
from energy efficiency measures for which the provider seeks to obtain
portfolio energy credits pursuant to this paragraph, at least 50 percent of
that amount must be saved from energy efficiency measures installed at service
locations of residential customers of the provider, unless a different percentage
is approved by the Commission.

(c) If the provider acquires or saves electricity
from a portfolio energy system or efficiency measure pursuant to a renewable
energy contract or energy efficiency contract with another party:

(1) The term of the contract must be not
less than 10 years, unless the other party agrees to a contract with a shorter
term; and

(2) The terms and conditions of the
contract must be just and reasonable, as determined by the Commission. If the
provider is a utility provider and the Commission approves the terms and
conditions of the contract between the utility provider and the other party,
the contract and its terms and conditions shall be deemed to be a prudent
investment and the utility provider may recover all just and reasonable costs
associated with the contract.

3. If, for the benefit of one or more
retail customers in this State, the provider has paid for or directly
reimbursed, in whole or in part, the costs of the acquisition or installation
of a solar energy system which qualifies as a renewable energy system and which
reduces the consumption of electricity, the total reduction in the consumption
of electricity during each calendar year that results from the solar energy
system shall be deemed to be electricity that the provider generated or
acquired from a renewable energy system for the purposes of complying with its
portfolio standard.

4. The Commission shall adopt regulations
that establish a system of portfolio energy credits that may be used by a
provider to comply with its portfolio standard.

5. Except as otherwise provided in
subsection 6, each provider shall comply with its portfolio standard during
each calendar year.

6. If, for any calendar year, a provider
is unable to comply with its portfolio standard through the generation of
electricity from its own renewable energy systems or, if applicable, through
the use of portfolio energy credits, the provider shall take actions to acquire
or save electricity pursuant to one or more renewable energy contracts or
energy efficiency contracts. If the Commission determines that, for a calendar
year, there is not or will not be a sufficient supply of electricity or a
sufficient amount of energy savings made available to the provider pursuant to
renewable energy contracts and energy efficiency contracts with just and
reasonable terms and conditions, the Commission shall exempt the provider, for
that calendar year, from the remaining requirements of its portfolio standard
or from any appropriate portion thereof, as determined by the Commission.

7. The Commission shall adopt regulations
that establish:

(a) Standards for the determination of just and
reasonable terms and conditions for the renewable energy contracts and energy
efficiency contracts that a provider must enter into to comply with its
portfolio standard.

(b) Methods to classify the financial impact of
each long-term renewable energy contract and energy efficiency contract as an
additional imputed debt of a utility provider. The regulations must allow the utility
provider to propose an amount to be added to the cost of the contract, at the
time the contract is approved by the Commission, equal to a compensating
component in the capital structure of the utility provider. In evaluating any
proposal made by a utility provider pursuant to this paragraph, the Commission
shall consider the effect that the proposal will have on the rates paid by the
retail customers of the utility provider.

8. Except as otherwise provided in NRS 704.78213, the provisions of this section do not
apply to a provider of new electric resources as defined in NRS 704B.130.

9. As used in this section:

(a) “Energy efficiency contract” means a contract
to attain energy savings from one or more energy efficiency measures owned,
operated or controlled by other parties.

(b) “Renewable energy contract” means a contract
to acquire electricity from one or more renewable energy systems owned,
operated or controlled by other parties.

(c) “Terms and conditions” includes, without
limitation, the price that a provider must pay to acquire electricity pursuant
to a renewable energy contract or to attain energy savings pursuant to an
energy efficiency contract.

1. If the Commission issues an order
approving an application that is filed pursuant to NRS 704B.310 or a request that is filed
pursuant to NRS 704B.325 regarding a
provider of new electric resources and an eligible customer, the Commission
must establish in the order a portfolio standard applicable to the electricity
sold by the provider of new electric resources to the eligible customer in
accordance with the order. The portfolio standard must require the provider of
new electric resources to generate, acquire or save electricity from portfolio
energy systems or efficiency measures in the amounts described in the portfolio
standard set forth in NRS 704.7821 which is effective
on the date on which the order approving the application or request is
approved.

2. Of the total amount of electricity that
a provider of new electric resources is required to generate, acquire or save
from portfolio energy systems or efficiency measures during each calendar year,
not more than 25 percent of that amount may be based on energy efficiency
measures.

3. If, for the benefit of one or more
eligible customers, the eligible customer of a provider of new electric
resources has paid for or directly reimbursed, in whole or in part, the costs
of the acquisition or installation of a solar energy system which qualifies as
a renewable energy system and which reduces the consumption of electricity, the
total reduction in the consumption of electricity during each calendar year
that results from the solar energy system shall be deemed to be electricity
that the provider of new electric resources generated or acquired from a
renewable energy system for the purposes of complying with its portfolio standard.

4. As used in this section:

(a) “Eligible customer” has the meaning ascribed
to it in NRS 704B.080.

(b) “Provider of new electric resources” has the
meaning ascribed to it in NRS 704B.130.

1. Except as otherwise provided in this
section or by specific statute, a provider is entitled to one portfolio energy
credit for each kilowatt-hour of electricity that the provider generates,
acquires or saves from a portfolio energy system or efficiency measure.

2. The Commission may adopt regulations
that give a provider more than one portfolio energy credit for each
kilowatt-hour of electricity saved by the provider during its peak load period
from energy efficiency measures.

3. Except as otherwise provided in this
subsection, for portfolio energy systems placed into operation on or after
January 1, 2016, the amount of electricity generated or acquired from a
portfolio energy system does not include the amount of any electricity used by
the portfolio energy system for its basic operations that reduce the amount of
renewable energy delivered to the transmission grid for distribution and sale
to customers of the provider. The provisions of this subsection do not apply to
a portfolio energy system placed into operation on or after January 1, 2016, if
a provider entered into a contract for the purchase of electricity generated by
the portfolio energy system on or before December 31, 2012. For the purposes of
this subsection, the amount of any electricity used by a portfolio energy
system for its basic operations:

(a) Except as otherwise provided in paragraph
(b), includes electricity used for the heating, lighting, air-conditioning and
equipment of a building located on the site of the portfolio energy system, and
for operating any other equipment located on such site.

(b) Does not include the electricity used by a
portfolio energy system that generates electricity from geothermal energy for
the extraction and transportation of geothermal brine or used to pump or
compress geothermal brine.

NRS 704.7822Calculation of electricity generated or acquired from certain
solar photovoltaic systems.For
the purpose of complying with a portfolio standard established pursuant to NRS 704.7821 or 704.78213,
a provider shall be deemed to have generated or acquired 2.4 kilowatt-hours of
electricity from a renewable energy system for each 1.0 kilowatt-hour of actual
electricity generated or acquired from a solar photovoltaic system, if:

1. The system is installed on the premises
of a retail customer;

2. The system was placed into operation on
or before December 31, 2015; and

3. On an annual basis, at least 50 percent
of the electricity generated by the system is utilized by the retail customer
on that premises.

NRS 704.7823System that draws or creates electricity from tires deemed not
to be renewable energy system; exception; calculation of electricity generated
or acquired from certain systems that utilize reverse polymerization process.

1. Except as otherwise provided in
subsection 2, any electricity generated by a provider using any system that
involves drawing or creating electricity from tires must be deemed to have not
come from a renewable energy system for the purpose of complying with a
portfolio standard established pursuant to NRS
704.7821 or 704.78213.

2. For the purpose of complying with a
portfolio standard established pursuant to NRS
704.7821 or 704.78213, a provider shall be
deemed to have generated or acquired 0.7 kilowatt-hours of electricity from a
renewable energy system for each 1.0 kilowatt-hour of actual electricity
generated or acquired from a system that utilizes a reverse polymerization
process, if:

(a) The system is installed on the premises of a
retail customer; and

(b) On an annual basis, at least 50 percent of
the electricity generated by the system is utilized by the retail customer on
that premises.

1. Each provider of electric service shall
submit to the Commission an annual report that provides information relating to
the actions taken by the provider to comply with its portfolio standard.

2. Each provider shall submit the annual
report to the Commission after the end of each calendar year and within the
time prescribed by the Commission. The report must be submitted in a format
approved by the Commission.

3. The Commission may adopt regulations
that require providers to submit to the Commission additional reports during
each calendar year.

4. Each annual report and each additional
report must include clear and concise information that sets forth:

(a) The amount of electricity which the provider
generated, acquired or saved from portfolio energy systems or efficiency
measures during the reporting period and, if applicable, the amount of
portfolio energy credits that the provider acquired, sold or traded during the
reporting period to comply with its portfolio standard;

(b) The capacity of each renewable energy system
owned, operated or controlled by the provider, the total amount of electricity
generated by each such system during the reporting period and the percentage of
that total amount which was generated directly from renewable energy;

(c) Whether, during the reporting period, the
provider began construction on, acquired or placed into operation any renewable
energy system and, if so, the date of any such event;

(d) Whether, during the reporting period, the
provider participated in the acquisition or installation of any energy
efficiency measures and, if so, the date of any such event; and

(e) Any other information that the Commission by
regulation may deem relevant.

5. Based on the reports submitted by
providers pursuant to this section, the Commission shall compile information
that sets forth whether any provider has used energy efficiency measures to
comply with its portfolio standard and, if so, the type of energy efficiency
measures used and the amount of energy savings attributable to each such energy
efficiency measure. The Commission shall report such information to:

(a) The Legislature, not later than the first day
of each regular session; and

(b) The Legislative Commission, if requested by
the Chair of the Commission.

1. The Commission may adopt regulations to
establish a temporary renewable energy development program that is designed to
assist with the completion of new renewable energy projects.

2. The Commission may require a utility
provider to participate in a temporary renewable energy development program.

3. If the Commission adopts regulations
establishing a temporary renewable energy development program, the program may
include, without limitation:

(a) The establishment of a private trust
administered by an independent trustee; and

(b) The payment of money from the private trust
to carry out the terms and conditions of renewable energy contracts approved by
the Commission between a utility provider and one or more new renewable energy
projects.

4. If a utility provider is participating
in a temporary renewable energy development program, the utility provider may
apply to the Commission for authority to close the program to new renewable
energy projects if the utility provider has achieved an investment grade credit
rating as determined by either Moody’s Investors Service, Inc., or Standard and
Poor’s Rating Services and has maintained that credit rating for 24 consecutive
months.

5. The Commission may grant an application
to close a temporary renewable energy development program only after finding
that the creditworthiness of the utility provider is sufficiently restored so
that closure of the program to new renewable energy projects is in the public
interest.

6. An order issued by the Commission
closing a temporary renewable energy development program to new renewable
energy projects is not effective as to any new renewable energy project which
has previously been accepted into the program and which is receiving money from
a private trust established under the program until the earlier of:

(a) The expiration or termination of the original
renewable energy contract approved by the Commission between the utility
provider and the new renewable energy project; or

(b) The original financing, including debt,
equity, or both debt and equity, as applicable, entered into by the new
renewable energy project upon completion of construction of the project has
been fully satisfied pursuant to its original terms.

7. As used in this section, “new renewable
energy project” means a project to construct a renewable energy system if:

(a) The project is associated with one or more
renewable energy contracts approved by the Commission pursuant to NRS 704.7821; and

1. The Commission shall adopt regulations
to carry out and enforce the provisions of NRS
704.7801 to 704.7828, inclusive. The
regulations adopted by the Commission may include any enforcement mechanisms
which are necessary and reasonable to ensure that each provider of electric
service complies with its portfolio standard. Such enforcement mechanisms may
include, without limitation, the imposition of administrative fines.

2. If a provider exceeds the portfolio
standard for any calendar year:

(a) The Commission shall authorize the provider
to carry forward to subsequent calendar years for the purpose of complying with
the portfolio standard for those subsequent calendar years any excess
kilowatt-hours of electricity that the provider generates, acquires or saves
from portfolio energy systems or efficiency measures;

(b) By more than 10 percent but less than 25
percent of the amount of portfolio energy credits necessary to comply with its
portfolio standard for the subsequent calendar year, the provider may sell any
portfolio energy credits which are in excess of 10 percent of the amount of
portfolio energy credits necessary to comply with its portfolio standard for
the subsequent calendar year; and

(c) By 25 percent or more of the amount of
portfolio energy credits necessary to comply with its portfolio standard for
the subsequent calendar year, the provider shall use reasonable efforts to sell
any portfolio energy credits which are in excess of 25 percent of the amount of
portfolio energy credits necessary to comply with its portfolio standard for
the subsequent calendar year.

Ê Any money
received by a provider from the sale of portfolio energy credits pursuant to
paragraphs (b) and (c) must be credited against the provider’s costs for
purchased fuel and purchased power pursuant to NRS
704.187 in the same calendar year in which the money is received, less any
verified administrative costs incurred by the provider to make the sale,
including any costs incurred to qualify the portfolio energy credits for
potential sale regardless of whether such sales are made.

3. If a provider does not comply with its
portfolio standard for any calendar year and the Commission has not exempted
the provider from the requirements of its portfolio standard pursuant to NRS 704.7821 or 704.78213,
the Commission:

(a) Shall require the provider to carry forward
to subsequent calendar years the amount of the deficiency in kilowatt-hours of
electricity that the provider does not generate, acquire or save from portfolio
energy systems or efficiency measures during a calendar year in violation of
its portfolio standard; and

(b) May impose an administrative fine against the
provider or take other administrative action against the provider, or do both.

4. Except as otherwise provided in
subsection 5, the Commission may impose an administrative fine against a
provider based upon:

(a) Each kilowatt-hour of electricity that the
provider does not generate, acquire or save from portfolio energy systems or
efficiency measures during a calendar year in violation of its portfolio
standard; or

(b) Any other reasonable formula adopted by the
Commission.

5. If a provider sells any portfolio
energy credits pursuant to paragraph (b) or (c) of subsection 2 in any calendar
year in which the Commission determines that the provider did not comply with
its portfolio standard, the Commission shall not make any adjustment to the
provider’s expenses or revenues and shall not impose on the provider any
administrative fine authorized by this section for that calendar year if:

(a) In the calendar year immediately preceding
the calendar year in which the portfolio energy credits were sold, the amount
of portfolio energy credits held by the provider and attributable to electricity
generated, acquired or saved from portfolio energy systems or efficiency
measures by the provider exceeded the amount of portfolio energy credits
necessary to comply with the provider’s portfolio standard by more than 10
percent;

(b) The price received for any portfolio energy
credits sold by the provider was not lower than the most recent value of
portfolio energy credits, net of any energy value if the price was for bundled
energy and credits, as determined by reference to the last long-term renewable
purchased power agreements approved by the Commission in the most recent
proceeding that included such agreements; and

(c) The provider would have complied with the
portfolio standard in the relevant year even after the sale of portfolio energy
credits based on the load forecast of the provider at the time of the sale.

6. In the aggregate, the administrative
fines imposed against a provider for all violations of its portfolio standard
for a single calendar year must not exceed the amount which is necessary and
reasonable to ensure that the provider complies with its portfolio standard, as
determined by the Commission.

7. If the Commission imposes an
administrative fine against a utility provider:

(a) The administrative fine is not a cost of service
of the utility provider;

(b) The utility provider shall not include any
portion of the administrative fine in any application for a rate adjustment or
rate increase; and

(c) The Commission shall not allow the utility
provider to recover any portion of the administrative fine from its retail
customers.

8. All administrative fines imposed and
collected pursuant to this section must be deposited in the State General Fund.

1. The Commission shall adopt regulations
authorizing an electric utility to recover an amount based on the measurable
and verifiable effects of the implementation by the electric utility of energy
efficiency and conservation programs approved by the Commission, which:

(a) Must include:

(1) The costs reasonably incurred by the
electric utility in implementing and administering the energy efficiency and
conservation programs; and

(2) Any financial disincentives relating
to other supply alternatives caused or created by the reasonable implementation
of the energy efficiency and conservation programs; and

(b) May include any financial incentives to
support the promotion of the participation of the customers of the electric
utility in the energy efficiency and conservation programs.

2. When considering whether to approve an
energy efficiency or conservation program proposed by an electric utility as
part of a plan filed pursuant to NRS 704.741, the
Commission shall consider the effect of any recovery by the electric utility
pursuant to this section on the rates of the customers of the electric utility.

3. The regulations adopted pursuant to
this section must not:

(a) Affect the electric utility’s incentives and
allowed returns in areas not affected by the implementation of energy
efficiency and conservation programs; or

(b) Authorize the electric utility to earn more
than the rate of return authorized by the Commission in the most recently
completed rate case of the electric utility.

4. As used in this section, “electric
utility” has the meaning ascribed to it in NRS 704.187.

NRS 704.786Lower Income Solar Energy Pilot Program: Creation required by
each electric utility in State. [Effective January 1, 2014, through December
31, 2025.]

1. Each electric utility in this State
shall create a Lower Income Solar Energy Pilot Program for the purpose of
installing, before January 1, 2017, distributed generation systems with a
cumulative capacity of at least 1 megawatt at locations throughout its service
territory which benefit low-income customers, including, without limitation,
homeless shelters, low-income housing developments and schools with significant
populations of low-income pupils. Each electric utility shall submit the
Program as part of its annual plan submitted pursuant to NRS 701B.230. The Commission shall
approve the Program with such modifications and upon such terms and conditions
as the Commission deems necessary or appropriate to enable the Program to meet
the purposes set forth in this subsection.

2. The Office of Energy shall advise the
Commission and each electric utility regarding grants and other sources of
money available to defray the costs of the Program.

3. As used in this section, “distributed
generation system” has the meaning ascribed to it in NRS 701B.055.

NRS 704.787Authority to sell electricity and provide transmission service
and distribution service to certain customers without being subject to
jurisdiction of Public Utilities Commission of Nevada; tariff for distribution
service; duties of certain electric utility; regulations by Colorado River Commission
of Nevada.

1. The Colorado River Commission of Nevada
may, without being subject to the jurisdiction of the Public Utilities
Commission of Nevada, sell electricity and provide transmission service or
distribution service, or both, only to meet the existing and future
requirements of:

(a) Any customer that the Colorado River
Commission of Nevada on July 16, 1997, was serving or had a contract to serve.

(b) The Southern Nevada Water Authority and its
member agencies for their water and wastewater operations.

(c) Except as otherwise provided in this
paragraph and subsection 2, any customer that receives an allocation of
capacity and associated firm energy from the Western Area Power Administration
of the United States Department of Energy, and any customer that has had an
annual peak load of at least 1 megawatt and receives an allocation of capacity
and associated firm energy of at least 1 megawatt from the Colorado River
Commission of Nevada, on or after October 1, 2017, from the resource pool of capacity
and associated firm energy created pursuant to the Hoover Power Allocation Act
of 2011, 43 U.S.C. §§ 619 et seq. The Colorado River Commission of Nevada shall
not, by the sale of electricity or by the provision of any transmission service
or distribution service pursuant to this paragraph, meet the demand for
electricity of any customer that is located within the service area of an
electric utility that primarily serves densely populated counties in excess of
the allocation made to the customer from the resource pool of capacity and
associated firm energy created pursuant to the Hoover Power Allocation Act of
2011, 43 U.S.C. §§ 619 et seq.

2. A customer that receives an allocation
of capacity and firm energy as described in paragraph (c) of subsection 1
shall, if the customer is located within the service area of an electric
utility that primarily serves densely populated counties, purchase from the
electric utility any necessary transmission and distribution services and any
balance of capacity and energy which is not purchased pursuant to paragraph (c)
of subsection 1 or generated by the customer.

3. Except as otherwise provided in this
subsection, a customer shall, for the capacity and firm energy received as
described in paragraph (c) of subsection 1:

(a) Pay the universal energy charge imposed
pursuant to NRS 702.160, unless the
customer is the State, a political subdivision of the State or any other
governmental entity or customer that is not required to pay the universal
service charge pursuant to NRS 702.160.

(b) Pay any mandatory fees imposed by the Public
Utilities Commission of Nevada pursuant to chapter
701B, 702 or 704 of
NRS which are assessed against customers in the same rate class.

(c) If the customer is located within the service
area of an electric utility that primarily serves densely populated counties,
pay to the electric utility a fee or receive a credit from the electric utility
which is approved by the Public Utilities Commission of Nevada pursuant to
paragraph (b) of subsection 7 of NRS
704B.310 for the purpose of offsetting the customer’s load-share portion of
any unrecovered balance in the deferred accounts of the electric utility for
the costs for purchased fuel and purchased power and for which the electric
utility seeks a rate adjustment pursuant to subsections 10 and 11 of NRS 704.110.

Ê The
provisions of this subsection do not apply to a customer who receives an
allocation described in paragraph (c) of subsection 1 in accordance with the
State Plan for Economic Development developed pursuant to NRS 231.053.

4. The Public Utilities Commission of
Nevada shall establish a just and reasonable tariff for:

(a) The electric distribution service authorized
by paragraphs (a) and (b) of subsection 1 to be provided by an electric utility
that primarily serves densely populated counties to the Colorado River
Commission of Nevada for its sale of electricity or electric distribution
services, or both, to a customer of the Colorado River Commission of Nevada
pursuant to paragraph (a) or (b) of subsection 1.

(b) The electricity and electric distribution
service authorized by paragraph (c) of subsection 1 and subsection 2 to be
provided by an electric utility that primarily serves densely populated
counties to the Colorado River Commission of Nevada for its sale of electricity
or electric distribution services, or both, to a customer of the Colorado River
Commission of Nevada pursuant to paragraph (c) of subsection 1.

6. The Colorado River Commission of Nevada
may adopt regulations to carry out the provisions of this section.

7. As used in this section:

(a) “Costs for purchased fuel and purchased
power” has the meaning ascribed to it in paragraph (b) of subsection 5 of NRS 704.187.

(b) “Electric utility that primarily serves
densely populated counties” means an electric utility that, with regard to the
provision of electric service, derives more of its annual gross operating
revenue in this State from customers located in counties whose population is
700,000 or more than it does from customers located in counties whose
population is less than 700,000.

(c) “Southern Nevada Water Authority” has the
meaning ascribed to it in NRS 538.041.

NRS 704.7871Definitions. [Effective through June 30, 2018.]As used in NRS 704.7871
to 704.7882, inclusive, unless the context
otherwise requires, the words and terms defined in NRS
704.7872, 704.7873 and 704.7874
have the meanings ascribed to them in those sections.

NRS 704.7873“Participant” defined. [Effective through June 30, 2018.]“Participant” means an applicant who has
received initial approval and a letter of eligibility from the Office of
Economic Development pursuant to NRS 704.7876 and
who enters into a contract approved by the Commission pursuant to NRS 704.7877.

NRS 704.7874“Program” defined. [Effective through June 30, 2018.]“Program” means the Economic Development
Electric Rate Rider Program established by NRS
704.7875 to carry out the provisions of NRS
704.7871 to 704.7882, inclusive.

1. The Economic Development Electric Rate
Rider Program is hereby established for the purpose of attracting new
commercial and industrial businesses to this State. The Commission, in consultation
with the Office of Economic Development, shall administer the Program.

2. Each electric utility in this State
shall set aside an amount of capacity determined by the Commission for
allocation to new customers pursuant to the Program, but the total amount of
capacity that the Commission may require to be set aside by all electric
utilities in this State pursuant to this subsection must not exceed 50
megawatts.

1. A person who, in anticipation of the
incentive provided pursuant to the Program, locates or intends to locate a new
commercial or industrial business in this State may apply to the Office of
Economic Development to participate in the Program.

2. An application to participate in the
Program must be submitted on a form approved by the Office of Economic
Development and must include:

(a) The name, business address and telephone
number of the applicant;

(b) The location or proposed location of the
applicant’s facility and a detailed description of the facility;

(c) Proof satisfactory to the Office of Economic
Development that the applicant satisfies the criteria for eligibility set forth
in subsection 3;

(d) An attestation, on a form approved by the
Office of Economic Development, that but for the incentive provided pursuant to
the Program, the applicant would not have located or intended to locate the
business in this State; and

(e) Any other information required by the Office
of Economic Development.

3. To be eligible for participation in the
Program, an applicant must demonstrate that:

(a) The applicant is or intends to be a new
commercial or industrial customer of an electric utility in this State;

(b) The applicant is not, and has not been during
the immediately preceding 12 months, a customer of any other electric utility
in this State;

(c) The new load to be served by the electric
utility is more than 300 kilowatts;

(d) The electric utility has determined that the
applicant’s use of the load is not for a project, purpose or facility which
carries an abnormal risk or is seasonal, intermittent or temporary; and

(e) The applicant has applied for each economic
incentive, including, without limitation, any abatement or partial abatement of
taxes, offered by the State or any local government for which the applicant is
eligible.

4. Upon the receipt of a completed
application, the Office of Economic Development shall consider the application
and make a determination of whether the applicant satisfies the criteria for
eligibility. If the Office of Economic Development determines that the
applicant satisfies the criteria for eligibility, the Office of Economic
Development may give initial approval to the applicant.

5. If the Office of Economic Development
gives initial approval to an applicant, the Office of Economic Development
shall:

(a) Provide notice of the initial approval to the
applicant;

(b) Issue to the applicant a letter of
eligibility; and

(c) Forward a copy of the applicant’s application
and letter of eligibility to the Commission.

1. Upon receipt of an application and
letter of eligibility pursuant to paragraph (c) of subsection 5 of NRS 704.7876, the Commission shall:

(a) Review the application;

(b) Establish the rates which may be charged to
the applicant by the electric utility that will serve the load of the
applicant; and

(c) In addition to the terms required by
subsection 3, establish any additional terms which must be included in the
contract between the applicant and the electric utility.

2. Before any applicant enters into a
contract with an electric utility pursuant to the Program, the applicant shall:

(a) Provide to the electric utility that will
serve the load of the applicant access to the applicant’s facility or plans for
the facility for the purpose of the electric utility making recommendations
concerning the energy efficiency of the facility; and

(b) Provide proof satisfactory to the Commission
that the new load under the contract will have an annual load factor of 50
percent or more for each year of the term of the contract.

3. An applicant may participate in the
Program pursuant to a contract which is entered into by the applicant and the
electric utility that will serve the load of the applicant and which is
approved by the Commission. A contract entered into pursuant to this section
must include provisions setting forth:

(a) The term of the contract, which must be 5
years;

(b) The term of the discounts applicable under
the Program, which must be 4 years;

(c) The rates to be paid for electricity by the
participant;

(d) That the discount approved by the Commission
does not apply to up-front costs, the base tariff general rate, any otherwise
applicable tariff or any taxes, surcharges, amortization or program rate
elements;

(e) The deposit requirements, which must be based
on the rates applicable under the second year of the contract;

(f) That the participant ceases to be eligible
for any discounted rates for electricity if the participant fails to satisfy
any requirements set forth in the contract or NRS
704.7871 to 704.7882, inclusive, or any
regulations adopted pursuant thereto; and

(g) Any additional requirements prescribed by the
Commission.

4. An electric utility shall prepare a
contract to be entered into by the electric utility and a participant and
submit the contract to the Commission for approval. Upon approval of the
contract by the Commission, the electric utility and the applicant may enter
into the contract and the applicant may participate in the Program. The
Commission shall forward a copy of the approved contract to the Office of
Economic Development.

NRS 704.7878Electric utility required to recover certain amounts through
deferred energy accounting adjustment application. [Effective through June 30,
2018.]Notwithstanding any other
provision of this chapter, an electric utility that enters into a contract with
a participant pursuant to NRS 704.7877 shall, in
the manner provided pursuant to the regulations adopted by the Commission
pursuant to paragraph (c) of subsection 1 of NRS
704.7881, recover through a deferred energy accounting adjustment
application an amount equal to the discount provided to the participant
pursuant to the contract.

NRS 704.7879Failure by participant to comply with contract or Program.
[Effective through June 30, 2018.]If
the Commission determines that a participant in the Program has failed to
fulfill any requirement of the contract or carry out any duty imposed pursuant
to the Program, the Commission shall issue an order requiring the participant
to pay to the electric utility an amount equal to the rate which would have
been charged but for the participant’s participation in the Program.

NRS 704.788Limitations on acceptance or approval of application for
participation in Program. [Effective through June 30, 2018.]The Office of Economic Development shall not
accept an application or give initial approval to any applicant for
participation in the Program, and the Commission shall not approve an applicant
for participation in the Program, after the earlier of December 31, 2017, or
the date on which the capacity set aside for allocation pursuant to the Program
is fully allocated.

NRS 704.7881Regulations. [Effective through June 30, 2018.]The Commission, in consultation with the
Office of Economic Development:

1. Shall adopt regulations:

(a) Establishing the discounted electric rates
that may be charged by an electric utility pursuant to the Program, which must
be established as a percentage of the base tariff energy rate and for which:

(1) In the first year of a contract
entered into pursuant to NRS 704.7877, the
reduction in the rates as a result of the discount must not exceed 30 percent
of the base tariff energy rate;

(2) In the second year of a contract
entered into pursuant to NRS 704.7877, the
reduction in the rates as a result of the discount must not exceed 20 percent
of the base tariff energy rate;

(3) In the third year of a contract
entered into pursuant to NRS 704.7877, the
reduction in the rates as a result of the discount must not exceed 20 percent
of the base tariff energy rate; and

(4) In the fourth year of a contract
entered into pursuant to NRS 704.7877, the
reduction in the rates as a result of the discount must not exceed 10 percent
of the base tariff energy rate;

(b) Prescribing the form and content of the
contract entered into pursuant to NRS 704.7877;

(c) Prescribing the procedure by which an
electric utility is authorized to recover through a deferred energy accounting
adjustment application the amount of the discount provided to a participant in
the Program; and

(d) Prescribing any additional information which
must be submitted by an applicant for participation in the Program.

2. May adopt any other regulations it
determines are necessary to carry out the provisions of NRS
704.7871 to 704.7882, inclusive.

NRS 704.7882Preparation of written report by Commission; submission of
report to Legislature. [Effective through June 30, 2018.]The Commission shall, on or before December
31, 2014, prepare a written report concerning the Program and submit the report
to the Director of the Legislative Counsel Bureau for transmittal to the 78th
Session of the Legislature. The report must include, without limitation,
information concerning:

1. The number of participants in the
Program;

2. The amount of electricity allocated
pursuant to the Program;

3. The total amount of the discounts
provided pursuant to the Program; and

4. The remaining amount of electricity
available for allocation pursuant to the Program.

1. It is unlawful for a person to obtain
any water, gas, electricity, power or other service, goods or product provided
by a public utility with the intent to avoid payment therefor, by:

(a) Opening, breaking into, tapping or connecting
with any pipe, flume, ditch, conduit, reservoir, wire, meter or other apparatus
belonging to or used by any other person or by the State, any county, city,
district or municipality, and taking and removing therefrom or allowing to flow
or be taken therefrom any water, gas, electricity or power belonging to
another;

(b) Connecting a pipe, tube, flume, conduit, wire
or other instrument or appliance with any pipe, conduit, tube, flume, wire,
line, pole, lamp, meter or other apparatus belonging to or used by any water,
irrigation, gas, electric or power company or corporation, or belonging to or
used by any other person in such a manner as to take therefrom water, gas,
electricity or power for any purpose or use without passing through the meter
or instrument or other means provided for registering the quantity consumed or
supplied;

(c) Altering, disconnecting, removing, injuring
or preventing the action of any headgate, meter or other instrument used to
measure or register the quantity of water, gas, electricity or power used or
supplied; or

(d) Injuring or interfering with the efficiency
of any meter, pipe, conduit, flume, wire, pole, line, lamp, fixture, hydrant or
other attachment or apparatus belonging to or used by any water, irrigation,
gas, electric or power company or corporation.

2. If the value of the service involved or
the property damaged or stolen is:

(a) Five hundred dollars or more, a person who
violates the provisions of this section is guilty of a category D felony and
shall be punished as provided in NRS 193.130.
In addition to any other penalty, the court shall order the person to pay
restitution.

(b) Less than $500, a person who violates the
provisions of this section is guilty of a misdemeanor.

Ê In
determining the value of the service involved, the value of all services
unlawfully obtained or attempted to be obtained within 3 years before the time
the indictment is found or the information is filed may be aggregated.

3. This section applies when the service
involved either originates or terminates, or both originates and terminates, in
this state, or when the charges for the service would have been billable in the
normal course by a person providing the service in this state but for the fact
that the service was obtained or attempted to be obtained by one or more of the
means set forth in subsection 1.

1. Any public utility may bring a civil
action for damages against any person who willfully and knowingly obtains,
attempts to obtain or solicits, aids or abets another to obtain any service
provided by the public utility by:

(a) Opening, breaking into, tapping or connecting
with any pipe, flume, ditch, conduit, reservoir, wire, meter or other apparatus
owned or used by another person;

(b) Bypassing any meter or other instrument used
to register the quantity consumed or supplied; or

(c) Altering, disconnecting, removing, injuring
or preventing the action of any meter or other instrument used to register the
quantity consumed or supplied,

Ê and recover
a sum equal to treble the amount of the actual damages, plus all reasonable
costs and expenses incurred by the public utility because of that conduct,
including the cost of equipment, investigating the matter and expert witnesses
and attorney’s fees.

2. There is a rebuttable presumption that
the person responsible for payment for the delivery of the service of a public
utility to any premises caused or had knowledge of any act specified in
subsection 1 if the person:

(a) Is the occupant of the premises; or

(b) Has any access to the system for delivery of
the service to the premises.

3. The presumption provided in subsection
2 only shifts the burden of going forward with the evidence and does not shift
the burden of proof to the defendant.

4. A person who willfully or negligently
injures or destroys the property of a public utility which is used in the
actual production, distribution or delivery of the service provided by the public
utility is liable to the public utility for the cost of the repair or
replacement of the property injured or destroyed, including the direct and
indirect costs attributable to the repair or replacement but subtracting the
value, if any, of salvage.

5. Nothing in this section abridges or
alters any other right of action or remedy available to a public utility before
or after July 1, 1985.

6. As used in this section, “direct and
indirect costs attributable to repair or replacement” include, but are not
limited to, costs for:

NRS 704.820Short title.NRS 704.820 to 704.900,
inclusive, shall be known and may be cited as the Utility Environmental
Protection Act.

(Added to NRS by 1971, 554)

NRS 704.825Declaration of legislative findings and purpose.

1. The Legislature hereby finds and
declares that:

(a) There is at present and will continue to be a
growing need for electric, gas and water services which will require the
construction of new facilities. It is recognized that such facilities cannot be
built without in some way affecting the physical environment where such
facilities are located.

(b) It is essential in the public interest to
minimize any adverse effect upon the environment and upon the quality of life
of the people of the State which such new facilities might cause.

(c) Present laws and practices relating to the
location of such utility facilities should be strengthened to protect
environmental values and to take into account the total cost to society of such
facilities.

(d) Existing provisions of law may not provide
adequate opportunity for natural persons, groups interested in conservation and
the protection of the environment, state and regional agencies, local
governments and other public bodies to participate in proceedings regarding the
location and construction of major facilities.

2. The Legislature, therefore, hereby
declares that it is the purpose of NRS 704.820 to 704.900, inclusive, to provide a forum for the
expeditious resolution of all matters concerning the location and construction
of electric, gas and water transmission lines and associated facilities.

NRS 704.830Definitions.As
used in NRS 704.820 to 704.900,
inclusive, unless the context otherwise requires, the words and terms defined
in NRS 704.834 to 704.860,
inclusive, have the meanings ascribed to them in those sections.

NRS 704.840“Commence to construct” defined.“Commence
to construct” means any clearing of land, excavation or other action which
would adversely affect the natural environment of the site or route of a
utility facility, but does not include changes needed for temporary use of
sites or routes for nonutility purposes, or uses in securing geological data,
including necessary borings to ascertain foundation conditions.

(a) That is responsible for the enforcement of
environmental laws and whose approval is required for the construction of a
utility facility, including, without limitation, the State Environmental
Commission, the State Department of Conservation and Natural Resources and a
local air pollution control board; or

(b) Whose approval is required for granting any
variance, special use permit, conditional use permit or other special exception
under NRS 278.010 to 278.319, inclusive, or 278.640 to 278.675, inclusive, or any regulation or
ordinance adopted pursuant thereto, that is required for the construction of a
utility facility.

NRS 704.850“Person” defined.“Person”
includes a natural person, corporation, partnership, public utility,
government, governmental agency, political subdivision of a government and any
other entity that seeks to construct a utility facility.

1. Electric generating plants and their
associated facilities, except electric generating plants and their associated
facilities which use or will use renewable energy, as defined in NRS 704.7811, as their primary source of energy to
generate electricity and which have or will have a nameplate capacity of not
more than 70 megawatts, including, without limitation, a net metering system,
as defined in NRS 704.771. As used in this
subsection, “associated facilities” includes, without limitation, any
facilities for the storage, transmission or treatment of water, including,
without limitation, facilities to supply water or for the treatment or disposal
of wastewater, which support or service an electric generating plant.

1. Notwithstanding any specific statute,
regulation or ordinance to the contrary, the process for the issuance by the
Commission or any other permitting entity of a permit, license or other
approval for the construction of a utility facility which is subject to the
provisions of NRS 704.820 to 704.900,
inclusive, must be conducted in accordance with those provisions.

2. No provision of NRS
704.820 to 704.900, inclusive, exempts or is
intended to exempt the construction of a utility facility from any requirements
that are or may be imposed on the construction of the utility facility by the
Federal Government.

1. A person, other than a local
government, shall not commence to construct a utility facility in the State
without first having obtained a permit therefor from the Commission. The
replacement of an existing facility with a like facility, as determined by the
Commission, does not constitute construction of a utility facility. Any
facility, with respect to which a permit is required, must thereafter be constructed,
operated and maintained in conformity with the permit and any terms, conditions
and modifications contained therein. A permit may only be issued pursuant to NRS 704.820 to 704.900,
inclusive. Any authorization relating to a utility facility granted under other
laws administered by the Commission constitutes a permit under those sections
if the requirements of those sections have been complied with in the
proceedings leading to the granting of the authorization.

2. A permit may be transferred, subject to
the approval of the Commission, to a person who agrees to comply with the
terms, conditions and modifications contained therein.

(a) For which, before July 1, 1971, an
application for the approval of the facility has been made to any federal,
state, regional or local governmental agency which possesses the jurisdiction
to consider the matters prescribed for finding and determination in NRS 704.890;

(b) For which, before July 1, 1971, a
governmental agency has approved the construction of the facility and the
person has incurred indebtedness to finance all or part of the cost of the
construction;

(c) Over which an agency of the Federal
Government has exclusive jurisdiction; or

(1) Is not jointly owned by or with an
entity that is not such a supplier of services; and

(2) Is subject to the provisions of the
National Environmental Policy Act of 1969, 42 U.S.C §§ 4321 et seq.

4. Any person intending to construct a
utility facility excluded from NRS 704.820 to 704.900, inclusive, pursuant to paragraph (a) or (b) of
subsection 3 may elect to waive the exclusion by delivering notice of its
waiver to the Commission. NRS 704.820 to 704.900, inclusive, thereafter apply to each utility
facility identified in the notice from the date of its receipt by the
Commission.

NRS 704.870Requirements for filing application: Form and contents;
procedure when federal agency is required to conduct environmental analysis;
time for filing application; service; public notice.

1. Except as otherwise provided in
subsection 2, a person who wishes to obtain a permit for a utility facility
must file with the Commission an application, in such form as the Commission
prescribes, containing:

(a) A description of the location and of the
utility facility to be built thereon;

(b) A summary of any studies which have been made
of the environmental impact of the facility; and

(c) A description of any reasonable alternate
location or locations for the proposed facility, a description of the
comparative merits or detriments of each location submitted, and a statement of
the reasons why the primary proposed location is best suited for the facility.

Ê A copy or
copies of the studies referred to in paragraph (b) must be filed with the
Commission and be available for public inspection.

2. If a person wishes to obtain a permit
for a utility facility and a federal agency is required to conduct an
environmental analysis of the proposed utility facility, the person must:

(a) Not later than the date on which the person
files with the appropriate federal agency an application for approval for the
construction of the utility facility, file with the Commission and each other
permitting entity a notice, in such a form as the Commission or other
permitting entity prescribes; and

(b) Not later than 30 days after the issuance by
the appropriate federal agency of either the final environmental assessment or
final environmental impact statement, but not the record of decision or similar
document, relating to the construction of the utility facility:

(1) File with the Commission an
application that complies with the provisions of subsection 1; and

(2) File with each other permitting entity
an application for a permit, license or other approval for the construction of
the utility facility.

3. A copy of each application filed with
the Commission must be filed with the Administrator of the Division of
Environmental Protection of the State Department of Conservation and Natural Resources.

4. Each application filed with the
Commission must be accompanied by:

(a) Proof of service of a copy of the application
on the clerk of each local government in the area in which any portion of the
facility is to be located, both as primarily and as alternatively proposed; and

(b) Proof that public notice thereof was given to
persons residing in the municipalities entitled to receive notice pursuant to
paragraph (a) by the publication of a summary of the application in newspapers
published and distributed in the area in which the utility facility is proposed
to be located.

5. Not later than 5 business days after
the Commission receives an application pursuant to this section, the Commission
shall issue a notice concerning the application. Any person who wishes to
become a party to a permit proceeding pursuant to NRS
704.885 must file with the Commission the appropriate document required by NRS 704.885 within the time frame set forth in the
notice issued by the Commission pursuant to this subsection.

NRS 704.871Approval of application for utility facility not intended to
serve customers in State.If the
Commission approves an application submitted by a public utility pursuant to NRS 704.820 to 704.900,
inclusive, for a utility facility which is not intended to serve customers in
this State and the cost of which will not be included in the rates of that
public utility, the public utility is not required to include the utility
facility in any plan filed pursuant to NRS 704.741.

NRS 704.873Commission has exclusive jurisdiction to determine need for
utility facilities of certain public utilities; other permitting entities
precluded from considering need.If
a public utility that is subject to the provisions of NRS
704.736 to 704.754, inclusive, applies to the
Commission for a permit for the construction of a utility facility:

1. The Commission has exclusive
jurisdiction with regard to the determination of whether a need exists for the
utility facility; and

2. No other permitting entity may
consider, in its review of any application for a permit, license or other
approval for the construction of the utility facility, whether a need exists
for the utility facility.

NRS 704.875Review of application by Division of Environmental Protection of
State Department of Conservation and Natural Resources.The Division of Environmental Protection of
the State Department of Conservation and Natural Resources shall review each
application filed and may participate in any proceeding held pursuant to NRS 704.880.

NRS 704.877Duty to accept and incorporate findings and conclusions of
environmental review that already has been conducted; duplicative review
prohibited; exception; duty to cooperate and coordinate to avoid duplication of
activities.

1. Except as otherwise provided in this
subsection, if an environmental review relating to the construction of a
utility facility in its entirety, or to the construction of any portion of a
utility facility, has already been conducted by an appropriate federal agency
or by a state, regional or local agency, the Commission and each other
permitting entity:

(a) Shall accept and incorporate the findings and
conclusions made in that review into any application for a permit, license or
other approval for the construction of the utility facility which is filed with
the Commission or other permitting entity; and

(b) Shall not conduct any duplicative
environmental review on the application.

Ê The
Commission or other permitting entity need not comply with the provisions of
this subsection if the Commission or other permitting entity has already
completed its own environmental review.

2. The Commission and other permitting
entities shall cooperate with each other and the appropriate federal agencies
on applications for permits, licenses and other approvals to construct a
utility facility and coordinate their activities, including, without
limitation, conducting hearings or environmental reviews, to avoid duplication
of activities.

NRS 704.880Power of Commission to dispense with hearing for certain
applications; practice and procedure at hearings.The
Commission, in its discretion, may dispense with the hearing on the application
if, upon the expiration of the time fixed in the notice thereof, no protest
against the granting of the permit has been filed by or in behalf of any
interested party. The conduct of the hearing shall be the same as set forth in
the applicable Rules of Practice and Procedure before the Commission.

(b) The Division of Environmental Protection of
the State Department of Conservation and Natural Resources.

(c) Each local government entitled to receive
service of a copy of the application pursuant to subsection 4 of NRS 704.870, if it has filed with the Commission a
notice of intervention as a party, within the time frame established by the
Commission pursuant to subsection 5 of NRS 704.870.

(d) Any natural person residing in a local
government entitled to receive service of a copy of the application pursuant to
subsection 4 of NRS 704.870, if such a person has
petitioned the Commission for leave to intervene as a party within the time
frame established by the Commission pursuant to subsection 5 of NRS 704.870 and if the petition has been granted by
the Commission for good cause shown.

(e) Any domestic nonprofit corporation or
association, formed in whole or in part to promote conservation of natural
beauty, to protect the environment, personal health or other biological values,
to preserve historical sites, to promote consumer interests, to represent
commercial and industrial groups, or to promote the orderly development of the areas
in which the facility is to be located, if it has filed with the Commission a
notice of intent to be a party within the time frame established by the
Commission pursuant to subsection 5 of NRS 704.870.

2. Any person may make a limited
appearance in the proceeding by filing a statement of position within the time
frame established by the Commission pursuant to subsection 5 of NRS 704.870. A statement filed by a person making a
limited appearance becomes part of the record. No person making a limited
appearance has the right to present oral testimony or cross-examine witnesses.

3. The Commission may, for good cause
shown, grant a petition for leave to intervene as a party to participate in
subsequent phases of the proceeding, filed by a municipality, government
agency, person or organization who is identified in paragraph (c), (d) or (e)
of subsection 1, but who failed to file in a timely manner a notice of
intervention, a petition for leave to intervene or a notice of intent to be a
party, as the case may be.

1. Except as otherwise provided in
subsection 3, the Commission may not grant a permit for the construction,
operation and maintenance of a utility facility, either as proposed or as
modified by the Commission, to a person unless it finds and determines:

(a) The nature of the probable effect on the
environment;

(b) If the utility facility emits greenhouse
gases and does not use renewable energy as its primary source of energy to
generate electricity, the extent to which the facility is needed to ensure
reliable utility service to customers in this State;

(c) That the need for the facility balances any
adverse effect on the environment;

(d) That the facility represents the minimum
adverse effect on the environment, considering the state of available
technology and the nature and economics of the various alternatives;

(e) That the location of the facility as proposed
conforms to applicable state and local laws and regulations issued thereunder
and the applicant has obtained, or is in the process of obtaining, all other
permits, licenses and approvals required by federal, state and local statutes,
regulations and ordinances; and

(f) That the facility will serve the public
interest.

2. If the Commission determines that the
location of all or a part of the proposed facility should be modified, it may
condition its permit upon such a modification. If the applicant has not
obtained all the other permits, licenses and approvals required by federal,
state and local statutes, regulations and ordinances as of the date on which
the Commission decides to issue a permit, the Commission shall condition its
permit upon the applicant obtaining those permits and approvals.

3. The requirements set forth in paragraph
(f) of subsection 1 do not apply to any application for a permit which is filed
by a state government or political subdivision thereof.

4. As used in this section, “renewable
energy” has the meaning ascribed to it in NRS 704.7811.

NRS 704.8905Grant or denial of application: Time within which Commission and
other permitting entities must act; determination upon record; terms,
conditions and modifications; service of Commission order.

1. Except as otherwise required to comply
with federal law:

(a) Not later than 150 days after a person has
filed an application regarding a utility facility pursuant to subsection 1 of NRS 704.870:

(1) The Commission shall grant or deny
approval of that application; and

(2) Each other permitting entity shall, if
an application for a permit, license or other approval for the construction of
the utility facility was filed with the other permitting entity on or before
the date on which the applicant filed the application pursuant to subsection 1
of NRS 704.870, grant or deny the application filed
with the other permitting entity.

(b) Not later than 120 days after a person has
filed an application regarding a utility facility pursuant to subsection 2 of NRS 704.870:

(1) The Commission shall grant or deny
approval of the application; and

(2) Each other permitting entity shall, if
an application for a permit, license or other approval for the construction of
the utility facility was filed with the other permitting entity on or before
the date on which the applicant filed with the appropriate federal agency an
application for approval for the construction of the utility facility, grant or
deny the application filed with the other permitting entity.

2. The Commission or other permitting
entity shall make its determination upon the record and may grant or deny the
application as filed, or grant the application upon such terms, conditions or
modifications of the construction, operation or maintenance of the utility
facility as the Commission or other permitting entity deems appropriate.

3. The Commission shall serve a copy of
its order and any opinion issued with it upon each party to the proceeding
before the Commission.

NRS 704.891Reports to be filed with Commission by person holding permit who
is not public utility.

1. Any person other than a public utility
who receives a permit issued by the Commission pursuant to NRS 704.820 to 704.900,
inclusive, shall, as provided in subsection 2, file with the Commission reports
which contain:

(a) The location, nature and capacity of that
facility;

(b) The anticipated date for commercial operation
of that facility;

(c) Information regarding whether any public
utility in this state has contracted for the purchase of the capacity or other
services of that facility; and

(d) Information regarding whether any capacity or
other services of that facility is available for purchase by public utilities
in this state.

2. The reports required by subsection 1
must be filed:

(a) On or before the date on which construction
of a utility facility is commenced; and

(b) On a date not later than:

(1) Twelve months before the scheduled
date of commercial operation of that facility; or

(2) Thirty days before the actual date of
commercial operation of that facility,

NRS 704.893Limitations on purchase of capacity of utility facility by
certain public utilities.No
public utility which has a parent or an affiliated corporation or a subsidiary
of that parent or affiliated corporation with an interest in the ownership of a
utility facility, may purchase or contract for the capacity of that facility
unless the purchase or the contract has been reviewed and approved by the
Commission in a manner consistent with the provisions of NRS
704.736 to 704.754, inclusive.

1. Any party aggrieved by any order issued
by the Commission on an application for a permit may apply for a rehearing
within 15 days after issuance of the order. Any party aggrieved by the final
order of the Commission on rehearing may obtain judicial review thereof by
filing a complaint in a district court within 30 days after the issuance of
such final order. Upon receipt of such complaint, the Commission shall
forthwith deliver to the court a copy of the written transcript of the record
of the proceeding before it and a copy of its decision and opinion entered
therein, which constitutes the record on judicial review.

2. The grounds for and the scope for
review of the court are limited to whether the opinion and order of the
Commission are:

(a) In conformity with the Constitution and the
laws of the State of Nevada and of the United States;

(b) Supported by substantial evidence in the
record;

(c) Made in accordance with the procedures set
forth in NRS 704.820 to 704.900,
inclusive, or established order, rule or regulation of the Commission; and

NRS 704.897Effect of provisions on jurisdiction of Commission over public
utilities serving retail customers in State.Nothing
in the provisions of NRS 704.820 to 704.900, inclusive, may be construed as limiting the
jurisdiction of the Commission over public utilities which serve retail
customers in this state.

NRS 704.900Cooperation with other states and Federal Government.The Commission, in the discharge of its duties
under NRS 704.820 to 704.900,
inclusive, or any other law, shall, to the extent practicable, make joint
investigations, hold joint hearings within or without the State, and issue
joint or concurrent orders in conjunction or concurrence with any official or
agency of any state or of the United States, whether in the holding of such
investigations or hearings, or in the making of such orders, the Commission
functions under agreements or compacts between states or under the concurrent
power of states to regulate interstate commerce, or as an agency of the United
States, or otherwise. The Commission may, in the discharge of its duties under NRS 704.820 to 704.900,
inclusive, negotiate and enter into agreements or compacts with agencies of
other states, pursuant to any consent of the Congress, for cooperative efforts
in permitting the construction, operation and maintenance of utility facilities
in accord with the purposes of NRS 704.820 to 704.900, inclusive, and for the enforcement of the
respective state laws regarding them.

1. “Alternative seller” has the meaning
ascribed to it in NRS 704.994.

2. “Company town” means a community whose
primary purpose is to provide housing to employees of a person who owns not
less than 70 percent of the dwellings, and may include commercial or other
supporting establishments.

3. “Dwelling” includes a commercial or
other supporting establishment.

4. “Utility” includes a public utility and
all city, county or other governmental entities which provide electric, gas or
water service to a mobile home park or a company town.

NRS 704.910Applicability of provisions to mobile home parks; utility or
alternative seller prohibited from selling to landlord at higher rate.

1. The provisions of NRS 704.910 to 704.960,
inclusive, apply to mobile home parks governed by the provisions of chapters 118B and 461A of NRS, utilities and alternative sellers
which provide utility service to those parks and landlords who operate those
parks.

2. A utility or an alternative seller
which provides gas, water or electricity to any landlord exclusively for
distribution or resale to tenants residing in mobile homes or for the
landlord’s residential use shall not charge the landlord for those services at
a rate higher than the current rates offered by the utility or alternative
seller, as appropriate, to its residential customers.

NRS 704.920Applicability of provisions to company towns; examination of
lines and equipment; costs; consequences of refusal to allow examination;
repair of unsafe lines or equipment.

1. The provisions of NRS 704.920 to 704.960,
inclusive, apply to company towns, utilities and alternative sellers which
provide utility services to company towns, and persons who own and operate
company towns.

2. The Commission shall require a public
utility or an alternative seller, as appropriate, which provides utility
services to a mobile home park or to a company town, or an independent person
who is qualified, to conduct examinations to examine and test the lines and
equipment for distributing electricity and gas within the park or town at the
request of the Manufactured Housing Division of the Department of Business and
Industry or a city or county which has responsibility for the enforcement of
the provisions of chapter 461A of NRS. The
utility or alternative seller, the person selected to conduct the examination and
the Commission may enter a mobile home park or company town at reasonable times
to examine and test the lines and equipment, whether or not they are owned by a
utility or an alternative seller.

3. The utility or alternative seller, as
appropriate, or the person selected to conduct the examination, shall conduct
the examination and testing to determine whether any line or equipment is
unsafe for service under the safety standards adopted by the Commission for the
maintenance, use and operation of lines and equipment for distributing
electricity and gas, and shall report the results of the examination and
testing to the Commission.

4. The owner of the mobile home park or
company town shall pay for the costs of the examination and testing.

5. If the landlord of a mobile home park
or owner of a company town refuses to allow the examination and testing to be
made as provided in this section, the Commission shall deem the unexamined
lines and equipment to be unsafe for service.

6. If the Commission finds:

(a) Or deems any lines or equipment within a
mobile home park or company town to be unsafe for service, it shall take
appropriate action to protect the safety of the residents of the park or town.

(b) Such lines or equipment to be unsafe for
service or otherwise not in compliance with its safety standards, it may, after
a hearing, order the landlord or owner to repair or replace such lines and
equipment. For this purpose, the landlord or owner may expend some or all of
the money in the landlord’s or owner’s account for service charges for
utilities, which the landlord or owner is required to keep under NRS 704.940.

NRS 704.930Manner of provision and interruption of service by landlord of
mobile home park or owner of company town; notice of proposed increase in
rates.If a utility or an
alternative seller provides a utility service to a mobile home park or company
town and the landlord of the park or owner of the town charges the tenants or
the occupants of such dwellings for that service, the landlord or owner shall:

1. Provide that service to the tenants or
the occupants of such dwellings in a manner which is consistent with the
utility’s tariffs on file with the Commission, if applicable, and any law,
ordinance or governmental regulation relating to the provision of that service.
The landlord or owner of the town shall not interrupt such a service for
nonpayment of charges unless the interruption is performed in a manner which is
consistent with the utility’s tariffs on file with the Commission, if
applicable, and any law, ordinance or governmental regulation relating to the manner
of interrupting such a service for nonpayment of charges.

2. Not more than 5 days after the landlord
or owner of the town receives notice of a proposed increase in the rates of the
utility service, give notice to the tenants or those occupants of the proposed
increase.

NRS 704.940Rates; service charges; proration and limitations on certain
charges for water; itemization of charges; retention of copy of billings;
transfer of balance by landlord upon termination of interest in mobile home
park.

1. In a mobile home park or company town
where the landlord or owner is billed by a gas or electric utility or an
alternative seller and in turn charges the tenants or occupants of the
dwellings for the service provided by the utility or alternative seller, and
the park or town:

(a) Is equipped with individual meters for each
lot, the landlord or owner shall not charge a tenant or occupant for that service
at a rate higher than the rate paid by the landlord or owner.

(b) Is not equipped with individual meters for
each lot, the landlord or owner shall prorate the cost of the service equally
among the tenants of the park or occupants of the dwellings who use the
service, but the prorated charges must not exceed in the aggregate the cost of
the service to the landlord or owner.

2. In a mobile home park or company town
that:

(a) Is equipped with individual water meters for
each lot, the individual meters must be read and billed by the purveyor of the
water.

(b) Is not equipped with individual water meters
for each lot and the landlord or owner is billed by the purveyor of the water
and in turn charges the tenants or occupants of the dwellings for the service
provided by the purveyor, the landlord or owner shall prorate the cost of the
service equally among the tenants of the park or occupants of the dwellings who
use the service, but the prorated charges must not exceed in the aggregate the
cost of the service to the landlord or owner.

Ê The landlord
or owner of a mobile home park that converts from a master-metered water system
to individual water meters for each mobile home lot shall not charge or receive
any fee, surcharge or rent increase to recover from the landlord’s or owner’s
tenants the costs of the conversion. The owner of a company town that is not
equipped with individual water meters shall not convert from the master-metered
water system to individual water meters.

3. To the extent that the cost of
providing a utility service to the common area of a mobile home park or company
town can be identified, the landlord or owner may not recover the cost of the
utility service provided to the common area by directly charging a tenant or
the occupant of a dwelling for those services.

4. The landlord of a mobile home park or
owner of a company town may assess and collect a charge to reimburse the
landlord or owner for the actual cost of the service charge the landlord or
owner is required to pay to a water utility serving the park or town. If the
landlord or owner collects such a charge, the landlord or owner shall prorate
the actual cost of the service charge to the tenants or occupants of dwellings
who use the service. The landlord or owner shall not collect more than the
aggregate cost of the service to the landlord or owner.

5. The landlord may assess and collect a
service charge from the tenants of the park for the provision of gas and
electric utility services, but the amount of the charge must not be more than
the tenants would be required to pay the utility or alternative seller
providing the service. The landlord shall:

(a) Keep the money from the service charges in a
separate account and expend it only for federal income taxes which must be paid
as a result of the collection of the service charge, for preventive maintenance
or for repairing or replacing utility lines or equipment when ordered or
granted permission to do so by the Commission; and

(b) Retain for at least 3 years a complete record
of all deposits and withdrawals of money from the account and file the record
with the Commission on or before March 30 of each year.

6. Money collected by the landlord or
owner for service provided by a utility or an alternative seller to the tenants
of a mobile home park or occupants of the dwellings may not be used to
maintain, repair or replace utility lines or equipment serving the common area
of the mobile home park or company town.

7. The owner of a company town who
provides a utility service directly to the occupants of the town may charge the
occupants their pro rata share of the owner’s cost of providing that service.
Where meters are available, the pro rata share must be based on meter readings.
Where meters are not available, the owner shall determine a fair allocation
which must be explained in detail to the Commission in the reports required by NRS 704.960. The Commission may modify the allocation
in accordance with its regulations if it determines the owner’s method not to
be fair. The Commission shall adopt regulations governing the determination of
the costs which an owner of a company town may recover for providing a utility
service directly to the occupants of that town and the terms and conditions
governing the provision of that service.

8. The landlord or owner shall itemize all
charges for utility services on all bills for rent or occupancy. The landlord
or owner may pass through to the tenant or occupant any increase in a rate for
a utility service and shall pass through any decrease in a charge for a utility
service as it becomes effective.

9. The landlord or owner shall retain for
at least 3 years a copy of all billings for utility services made to the
tenants or the occupants of the landlord’s or owner’s dwellings and shall make
these records available upon request to the Commission for verification of
charges made for utility services.

10. A landlord whose interest in a mobile
home park terminates for any reason shall transfer to the landlord’s successor
in interest any balance remaining in the account for service charges for
utilities. Evidence of the transfer must be filed with the Commission.

11. The Commission may at any time examine
all books and records which relate to the landlord’s or owner’s purchase of or
billing for a service provided by a utility or an alternative seller if the
landlord or owner is charging the tenants of the mobile home park or occupants
of the dwellings for that service.

1. The tenant of a lot in a mobile home
park or occupant of a dwelling in a company town who believes that the landlord
or owner has violated the provisions of NRS 704.930,
704.940 or 704.960 may
complain to the Division of Consumer Complaint Resolution of the Commission.
The Division shall receive and promptly investigate the complaint. If the
Division is unable to resolve the complaint, the Division shall transmit the
complaint and its recommendation to the Commission.

2. The Commission shall investigate, give
notice and hold a hearing upon the complaint, applying to the extent
practicable the procedures provided for complaints against public utilities in chapter 703 of NRS.

3. If the Commission finds that the
landlord of the mobile home park or owner of the company town has violated the
provisions of NRS 704.930, 704.940
or 704.960, it shall order the landlord or owner to
cease and desist from any further violation. If the violation involves an
overcharge for a service, the Commission shall determine the amount of the
overcharge and order the landlord or owner to return that amount to the tenant
or occupant within a specified time.

4. If the landlord or owner fails or
refuses to comply with its order, the Commission may compel compliance by any
appropriate civil remedy available to it under this chapter. For the purposes
of compelling compliance by the landlord or owner, the Commission may use such
methods as are available for the Commission to compel the compliance of a
public utility.

NRS 704.960Annual report to be filed by landlord of mobile home park or
owner of company town.Each
landlord of a mobile home park or owner of a company town shall submit an
annual report to the Commission. The report must contain detailed information
on the collections and expenditures of the landlord’s or owner’s account for
service charges for utilities, information necessary to determine compliance
with NRS 704.940, details of any changes in
ownership during the period covered by the report and such other information as
the Commission deems necessary to determine whether the landlord or owner has
complied with the provisions of this chapter which apply to mobile home parks and
company towns. The Commission shall by regulation provide for the annual filing
of the reports.

NRS 704.964Lease of tank for storage of liquefied petroleum gas: Removal of
tank upon request; requirements for refund; penalty.

1. Each dealer who leases a tank for the
storage of liquefied petroleum gas to a customer shall, upon the request of a
customer, remove the tank from the customer’s premises.

2. The dealer shall refund to the
customer:

(a) On a pro rata basis, an amount equal to the
rent for the unused portion of the lease; and

(b) An amount equal to the value of the liquefied
petroleum gas which remains in the tank when the tank is removed. In
calculating the value of the liquefied petroleum gas, the dealer shall use the
price the customer paid for the liquefied petroleum gas.

3. The dealer shall mail the refund to the
customer within 15 days after the tank is removed from the customer’s premises.

4. Any person who violates any of the
provisions of this section is guilty of a misdemeanor.

NRS 704.9901Collection of taxes, fees and assessments from customers: Duties
of providers; billing requirements; disciplinary action for failure to comply.

1. Each provider of discretionary natural
gas service shall:

(a) Collect from each customer who is purchasing
natural gas from the provider of discretionary natural gas service any tax, fee
or assessment that would be due a governmental entity had the customer
continued to purchase natural gas from a public utility that was regulated
fully by the Commission pursuant to NRS 704.001 to 704.960, inclusive; and

2. Each person who is responsible for
billing a customer who is purchasing natural gas from a provider of
discretionary natural gas service shall ensure that the amount which the
customer must pay pursuant to this section is set forth as a separate item or
entry on each bill submitted to the customer.

3. Upon petition by a governmental entity
to which a tax, fee or assessment must be remitted pursuant to this section,
the Commission may limit, suspend or revoke any license or other authority
conferred by the Commission upon a provider of discretionary natural gas
service if the Commission, after providing an appropriate notice and hearing,
determines that the provider of discretionary natural gas service has failed to
pay the tax, fee or assessment.

NRS 704.991Informational report to Commission required regarding
anticipated demand, estimated cost, sources of gas and significant operational
or capital requirements.A utility
which supplies natural gas in this state shall file annually with the
Commission, in a format prescribed by the Commission, an informational report
which describes:

1. The anticipated demand for natural gas
made on its system by its customers;

2. The estimated cost of supplying natural
gas sufficient to meet the demand and the means by which the utility proposes
to minimize that cost;

3. The sources of planned acquisitions of
natural gas, including an estimate of the cost and quantity of the acquisitions
to be made from each source and an assessment of the reliability of the source;
and

4. Significant operational or capital
requirements of the utility related to its provision of gas service in this
state.

NRS 704.992Establishment of methods and programs to encourage natural gas
utilities to support energy conservation.

1. The Commission shall adopt regulations
to establish methods and programs for a public utility which purchases natural
gas for resale that remove financial disincentives which discourage the public
utility from supporting energy conservation, including, without limitation:

(a) Procedures for a public utility which
purchases natural gas for resale to have a mechanism established during a
general rate application filed pursuant to NRS 704.110
to ensure that the costs of the public utility for providing service are
recovered without regard to the difference in the quantity of natural gas
actually sold by the public utility by taking into account the adjusted and
annualized quantity of natural gas sold during a test year and the growth in
the number of customers of the public utility;

(b) Procedures for a public utility which
purchases natural gas for resale to apply to the Commission for approval of an
activity relating to increasing energy efficiency or energy conservation; and

(c) Procedures for a public utility which
purchases natural gas for resale to apply to the Commission for the recovery of
costs associated with an activity approved by the Commission pursuant to
paragraph (b).

2. The regulations adopted pursuant to
subsection 1 must ensure that the methods and programs consider the recovery of
costs, stabilization of revenue and any reduction of risk for the public
utility which purchases natural gas for resale.

NRS 704.993Definitions.As
used in NRS 704.993 to 704.999,
inclusive, unless the context otherwise requires, the words and terms defined
in NRS 704.994, 704.995
and 704.996 have the meanings ascribed to them in
those sections.

NRS 704.996“Potentially competitive service” defined.“Potentially competitive service” means a
component of service relating to the provision of natural gas to customers in
this state that is determined by the Commission to be suitable for purchase by
customers from alternative sellers.

NRS 704.997Alternative plan of regulation for utility that supplies natural
gas: Requirements; regulations; applicability of statutory provisions; use of
name or logo by affiliate; sale of service relating to supply of natural gas by
unlicensed alternative seller unlawful.

1. Except as otherwise provided in this
section, upon the receipt of a specific request for an exemption by a public
utility that supplies natural gas, the Commission may, to the extent it deems
necessary, exempt any service offered by the public utility from the strict
application of one or more provisions of this chapter. Such an exemption may be
made only upon a determination by the Commission, after notice and an
opportunity for a hearing, that the service is competitive, discretionary or potentially
competitive.

2. The Commission shall adopt regulations
necessary to establish an alternative plan of regulation of a public utility
that supplies natural gas and that is otherwise subject to regulation pursuant
to the provisions of this chapter. The alternative plan may include, but is not
limited to, provisions that:

(a) Allow adjustment of the rates charged by the
public utility during the period in which the utility elects the alternative
plan of regulation.

(b) Except as otherwise provided in this section,
specify the provisions of this chapter that do not apply to a public utility
which elects to be regulated under the alternative plan.

(c) Provide for flexibility of pricing for
services that are discretionary, competitive or potentially competitive.

3. A public utility that elects to be
regulated under the alternative plan established pursuant to this section:

(b) Is not subject to the remaining provisions of
this chapter to the extent specified pursuant to this section.

4. In providing a potentially competitive
service, an affiliate of a provider of a noncompetitive service may use the
name or logo, or both, of the provider of noncompetitive service.

5. It is unlawful for an alternative
seller to sell any service relating to the supply of natural gas to a customer
for the customer’s consumption within this State without first having obtained
a license from the Commission to do so.

1. Not later than January 1, 1999, the Commission shall, by regulation, set forth the procedures and conditions that
alternative sellers must satisfy before obtaining a license to sell potentially
competitive services to customers in this state, including, but not limited to:

(a) Safety;

(b) Reliability of service;

(c) Financial reliability;

(d) Fitness to serve new customers; and

(e) Billing practices and customer services,
including the initiation and termination of service.

2. The Commission may deny the application
of a prospective alternative seller for a license, or may limit, suspend or
revoke a license issued to an alternative seller, if the action is necessary to
protect the interests of the public or to enforce the provisions of this
chapter or a regulation of the Commission. In determining whether to take any
of those actions, the Commission may consider whether the applicant for or
holder of such a license, or any affiliate thereof, has engaged in activities
which are inconsistent with effective competition.

NRS 704.9985Collection of taxes, fees and assessments from customers: Duties
of public utilities and alternative sellers; billing requirements; disciplinary
action for failure to comply.

1. Each public utility that elects to be
regulated under an alternative plan of regulation pursuant to NRS 704.997 shall:

(a) Collect from each customer who is purchasing
natural gas from the public utility under the alternative plan of regulation
any tax, fee or assessment that would be due a governmental entity had the
customer continued to purchase natural gas from a public utility that was
regulated fully by the Commission pursuant to NRS
704.001 to 704.960, inclusive; and

(a) Collect from each customer who is purchasing
natural gas from the alternative seller any tax, fee or assessment that would
be due a governmental entity had the customer continued to purchase natural gas
from a public utility that was regulated fully by the Commission pursuant to NRS 704.001 to 704.960,
inclusive; and

3. Each person who is responsible for
billing a customer who is purchasing natural gas from a public utility under an
alternative plan of regulation or from an alternative seller shall ensure that
the amount which the customer must pay pursuant to this section is set forth as
a separate item or entry on each bill submitted to the customer.

4. Upon petition by a governmental entity
to which a tax, fee or assessment must be remitted pursuant to this section,
the Commission may limit, suspend or revoke any license or other authority
conferred by the Commission upon a public utility or alternative seller if the
Commission, after providing an appropriate notice and hearing, determines that
the public utility or alternative seller has failed to pay the tax, fee or
assessment.

1. A customer of natural gas within the
service territory of a public utility that supplies natural gas who obtains his
or her own supply of natural gas or capacity on a pipeline from a person other
than the public utility for at least 30 continuous days may seek restoration of
service from the public utility in accordance with the tariffs filed pursuant
to this section.

2. A public utility that supplies natural
gas shall file a tariff with the Commission that states the terms and
conditions under which a customer may restore his or her gas service from the
public utility pursuant to this section. The tariff must be reviewed by the
Commission and must include, without limitation:

(a) A procedure for re-establishing the gas
service;

(b) Methods of accounting to be used for
identifying and billing actual costs incurred by the public utility for:

(1) Re-establishing service;

(2) Obtaining new supplies of gas for the
customers; and

(3) Acquiring and maintaining the
necessary capacity for transporting the supplies of gas, if applicable;

(c) Methodology for determining the costs of
administration and overhead costs;

(d) Methods of accounting to determine any
incremental costs incurred by the public utility to serve the customer or group
of customers;

(e) Procedures for curtailment to be used in
establishing priorities of service;

(f) Procedures that will be available to
customers to resolve disputes in billing; and

(g) The minimum period during which the customer
must take the resumed service.

3. For the purposes of this section, a public
utility may charge its actual cost of obtaining any additional supply of gas to
serve the returning customers. The Commission shall verify the compliance of a
public utility with its tariff filed pursuant to this section.